Jaquez v. Union Radio Dispatch, Inc.
Docket: 111250/11 --6657A 6657 6656 6655
Court: Appellate Division of the Supreme Court of the State of New York; May 24, 2018; New York; State Appellate Court
Original Court Document: View Document
Daniel Jaquez and other plaintiffs, including Jose Cruz Molina, appealed a decision from the Supreme Court of New York County regarding their shareholder rights in Union Radio Dispatch, Inc. The Appellate Division affirmed the lower court's judgment, which restored the shareholders' rights (except for Jaquez) and awarded damages, ruling that the company had improperly terminated their shareholder rights and denied dividends in violation of its bylaws. Key points include: 1. **Affirmation of Judgment**: The court affirmed the judgment entered on March 2, 2017, which restored all plaintiffs’ rights as stockholders and awarded damages. 2. **Dismissal of Claims**: Jaquez's claims were dismissed as time-barred, falling outside the six-year statute of limitations for contract actions since he was expelled in May 2005 and the action was initiated in October 2011. 3. **Passive Shareholders**: The court classified plaintiffs Ortiz, Tatis, and Santos as passive shareholders, as they did not provide evidence of remaining active after three years of inactivity, per the corporate bylaws. 4. **Termination of Rights**: The court found that the termination of plaintiffs' shareholder rights was legally insufficient without a proper disciplinary hearing, which required 72 hours' notice. 5. **Damages for Dispatch Fees**: The court upheld the decision that plaintiffs Cruz Molina, Beras, and Benitez were entitled to damages based on a standard of 48 weeks of work per year, confirming this was supported by the evidence. The Appellate Division concluded that the defendant did not receive a fair trial regarding liability, and the remaining arguments from both parties for affirmative relief were rejected. The decision was recorded and entered on May 24, 2018.