Case Name: In the Matter of Ronald C. Mariello, Respondent, v. Sovran Group, Inc., Appellant
Court: New York Supreme Court, Appellate Division
Jurisdiction: New York
Decision Date: 1989-07-12
Citations: 152 A.D.2d 1007
Docket Number: 
Parties: In the Matter of Ronald C. Mariello, Respondent, v Sovran Group, Inc., Appellant.
Judges: 
Reporter: Appellate Division Reports
Volume: 152
Pages: 1007–1007

Head Matter:
In the Matter of Ronald C. Mariello, Respondent, v Sovran Group, Inc., Appellant.

Opinion:
Order unanimously affirmed with costs. Memorandum: Special Term correctly held that the stock sale and repurchase provisions of the parties' shareholders' agreement, which were triggered by petitioner's termination from employment, do not, as a matter of law, bar petitioner's proceeding to dissolve the corporation pursuant to Business Corporation Law § 1104-a. Because the agreement does not explicitly provide that the stock sale and repurchase provisions are the exclusive remedy available to a minority shareholder, a question of fact exists whether the "fair return on investment" requirement of Business Corporation Law § 1104-a (b) (1) has been met (see, Matter of Pace Photographers [Rosen], 71 NY2d 737, 747-748). (Appeal from order of Supreme Court, Erie County, Rath, J. — dismiss proceeding.) Present — Denman, J. P., Boomer, Green, Lawton and Davis, JJ.