Klein v. Wiley

Klein, 2025 NY Slip Op 04714 (Appellate Division Second Judicial Department 2025) · Appellate Division, Second Judicial Department · August 20, 2025 · No. Index No. 6056/19

Summary

This Appellate Division order dismisses an appeal from a trial court's grant of summary judgment in a shareholder's derivative action alleging waste of corporate assets and breach of fiduciary duty. The court holds that the appellant's right to directly appeal the interlocutory order terminated upon the entry of a final judgment in the underlying case on September 27, 2023. Consequently, the issues raised are consolidated with and reviewed as part of the subsequent appeal from the final judgment.

Court
Appellate Division, Second Judicial Department
Writing for the Court
MARK C. DILLON, J.P.; PAUL WOOTEN; LOURDES M. VENTURA; DONNA-MARIE E. GOLIA, JJ.
Jurisdiction
New York
Decision date
August 20, 2025
Docket number
Index No. 6056/19
Procedural posture
Appeal from order of the Supreme Court, Orange County granting summary judgment dismissing the complaint
Precedential value
published
Parties
Gregory Klein v. Edwin Wiley
Disposition
dismissed

Topics

fiduciary dutycorporate governancecorporate lawappellate procedurestandard of review

Practice areas

corporate lawappellate procedurecommercial litigation

Questions Presented

  1. Whether the appeal from the summary‑judgment order is proper after the entry of judgment in the underlying action
  2. Whether issues raised on the appeal from the order were already decided on the appeal from the judgment

Holdings

  1. The appeal is dismissed because the right of direct appeal terminated with the entry of judgment on September 27, 2023.

Key quotations

The appeal from the order must be dismissed because the right of direct appeal therefrom terminated with the entry of a judgment in the action on September 27, 2023.

Factual background

The plaintiff, a shareholder, brought a derivative action alleging waste of corporate assets and breach of fiduciary duty. The trial court granted the defendants' motion for summary judgment and dismissed the complaint. The plaintiff appealed the order.

Procedural history

The Supreme Court, Orange County entered an order on December 9, 2021 granting summary judgment dismissing the derivative complaint. The appellant sought direct appeal of that order, but the Appellate Division dismissed the appeal because the right of direct appeal terminated with the entry of judgment on September 27, 2023.

Court Document

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