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FBB ASSET MANAGERS, INC., appellant, v. ESTHER FREUND, ET AL., respondents.

DECISION ORDER

ORDERED that the order dated August 6, 2001, is reversed, on the law, the motions are denied, and the complaint and the petition are reinstated; and it is further,

ORDERED that the appeal from so much of the order dated January 28, 2002, as denied that branch of the plaintiff's motion which was for leave to renew is dismissed as academic, in light of the determination on the appeal from the order dated August 6, 2001; and it is further,

ORDERED that one bill of costs is awarded to the appellant.

Contrary to the contention of the respondents Esther Freund, Leopold Freund, and Jewelers World, Inc., their defense that the appellant corporation was dissolved by proclamation of the New Jersey Department of the Treasury before the commencement of the instant action and proceeding speaks to the plaintiff's legal capacity to sue, and not to the sufficiency of its claims for relief. Therefore, they were bound to raise this defense in their answers, or in a motion to dismiss made prior to answering. They took neither step, and thus waived that defense ( see CPLR 3211[a][3]; [e]; Harte v. Richmond County Sav. Bank, 224 A.D.2d 585; Erljur Assocs. v. Weissman, 134 A.D.2d 321; Lorisa Capital Corp. v. Gallo, 119 A.D.2d 99). The same holds true for the defense based on Business Corporation Law § 1312(a) ( see RCA Records v. Wiener, 166 A.D.2d 221).

The respondents' remaining contentions either are academic in light of our determination, or without merit.

SMITH, J.P., McGINITY, H. MILLER and RIVERA, JJ., concur.

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FBB ASSET MANAGERS v. FREUND
(Dec 15, 2003)