10 April 16, 2026, Justice Boddie of the Kings County Commercial Division issued a decision in Hangquin Huang v. 40-70 Realty LLC, 2026 NY Slip Op. 31773(U), holding that mixing direct and derivative claims in a complaint is no basis for dismissal so long as the individual claims are not mixed, explaining:
Defendants further argue that plaintiff confuses a shareholder’s derivative and individual rights because it appears to allege derivative claims inter alia, for breach of fiduciary duty (Second Cause of Action), along with individual requests for books and records and an accounting (Third Cause of Action) and constructive trust (Fifth Cause of Action).
However, it is well-settled that even if the plaintiffs have erroneously joined their individual claims with those of the corporation it would not require dismissal of the complaint, since they have not confused individual and derivative claims within each cause of action. Here, defendants do not contend that plaintiff has improperly commingled derivative and individual theories within any single cause of action. Rather, defendants take issue with plaintiff asserting both derivative and individual claims within the same complaint. That argument is unavailing. The complaint sets forth separate and distinct causes of action, and the mere inclusion of both derivative and individual claims in one pleading does not warrant dismissal.
(Internal quotations and citations omitted).