Matarazzo v. Segall
The case concerns an action brought by trustees of welfare and pension funds against Douglas Segall, one of the 10 largest shareholders of Edison Business Communication Services, Inc., to collect on an unsatisfied judgment previously obtained against Edison. The core issue is whether Segall can collaterally attack the Federal District Court judgment, which found Edison liable for unpaid contributions. The court, presided over by David Friedman, J., rules that Business Corporation Law § 630, which holds large shareholders personally liable for corporate contributions, bars relitigation of issues necessarily determined in the prior judgment, especially when there was an opportunity to litigate. The court also dismisses Segall's argument regarding the number of employees for whom contributions were due, noting that the welfare fund continued to pay insurance premiums for 12 employees without timely notification of a decrease. Consequently, the motion for summary judgment against Segall is granted.