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HAROLD B. EHRLICH, Appellant-Respondent, v. GEORGE A. HAMBRECHT et al., Respondents-Appellants.

In this action by a shareholder of a closely held corporation against the other shareholder, alleging the diversion of the contractual right to certain fees, the trial court correctly set aside the verdict and dismissed the conversion claim. There is no necessity to engage in conflict of laws analysis ( see Matter of Allstate Ins. Co. [Stolarz — New Jersey Mfrs. Ins. Co.], 81 NY2d 219, 223; SNS Bank v. Citibank, 7 AD3d 352, 354), since plaintiff's claim was derivative under the law of both Delaware ( see Tooley v. Donaldson, Lufkin Jenrette, Inc., 845 A2d 1031, 1035-1036 [Del 2004]) and New York ( Glenn v. Hoteltron Sys., 74 NY2d 386; Zissimatos v. United States Trust Co. of N.Y., 10 AD3d 587, lv denied 4 NY3d 710). The exception for claims based on an independent duty owed to the plaintiff is not implicated ( cf. Herbert H. Post Co. v. Sidney Bitterman, Inc., 219 AD2d 214, 225, and Venizelos v. Oceania Mar. Agency, 268 AD2d 291). The foregoing renders plaintiff's other contentions relating to the conversion claim academic, and we decline to reach them.

Defendants' contention that the verdict on the contract claim was the product of confusion and prejudice is unsupported by the record. We have considered the parties' other contentions for affirmative relief and find them unavailing.

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EHRLICH v. HAMBRECHT
(Jun 23, 2005)