Opinion ID: 202328
Heading Depth: 2
Heading Rank: 1

Heading: Change of Ownership

Text: The Agreement requires the licensee to notify Howard Johnson in writing at least 30 days in advance of the occurrence of any change of ownership of the Facility. Hotel Associates argues that there was no change of ownership because Fernández was the sole shareholder of both Horizons Hotel Corporation, the 1 By its terms, the Agreement is to be construed in accordance with New York law. Agreement, § 31. -3- corporation that previously owned the property, and R.R. Isla Verde Hotel Corp. (Isla Verde), the corporation that purchased the Carib Inn at a foreclosure sale. This argument is unavailing. [A] corporation is a separate and distinct legal entity apart from its stockholders. Hotel Esplanade, Inc. v. Herman, 197 N.Y.S.2d 579, 582 (N.Y. Sup. Ct. 1960) (rejecting the converse argument that ownership of a hotel changed where the identity of the stockholders changed, despite continuity of the corporate ownership). Therefore, Isla Verde's purchase of the Carib Inn at a foreclosure sale constituted a change of ownership, notwithstanding the identity of the shareholder.