Thursday, May 28, 2009

Reiss v. Financial Performance Center, 764 N.E.2d 958 (N.Y. 2001)

Issue(s)

Did the Appellate Court err in finding Reiss and Rebot were bound by the reverse stock split?

Holding(s)

Yes.

Reasoning/Analysis

The Court found that even where a contingency has been omitted, we will not necessarily imply a term since courts may not by construction add or excise terms, nor distort the meaning of those used and thereby make a new contract.  Financial should not be given a remedy to save it from the consequences of its own agreements.

Judgment/Outcome

The Court reversed the judgment of the lower court.

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