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Corporations Keyed to Hazen
Duane Jones Co., Inc. v. Burke
Citation:
117 N.E.2d 237 (N.Y. 1954)Facts
In 1942, Duane Jones organized the plaintiff corporation. In July 1951, plaintiff serviced twenty-five customers or accounts. During the preceding six months plaintiff had lost three of its accounts total gross billings of which $6,500,000 and had received resignations from three executives as well as from certain staff members of the organization. It also appears that Duane Jones, the president of plaintiff corporation, had been guilty of certain behavior lapses at his office, at business functions and during interviews with clients. Defendant Hulshizer testified that he submitted an oral resignation as officer, director and employee of plaintiff corporation but that, at the request of Jones, he agreed to stay on in a nominal capacity. The witness stated that he acted as secretary of the corporation and retained possession of the corporate records. Despite their resignations as employees of plaintiff, defendants testified that they continued to receive payments from, and to perform services for, plaintiff for varying periods of time.
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