New York Court of Appeals

Fairchild Hiller Corporation v. McDonnell Douglas Corporation

April 21, 197128 N.Y.2d 325

Summary

The New York Court of Appeals reversed the Appellate Division and dismissed the eleventh, twelfth, and thirteenth affirmative defenses asserted by McDonnell Douglas. The court held that the assignment of the claim to Fairchild was not champertous, that Fairchild was the real party in interest, and that Farmingdale was not a necessary party. The decision was based on extensive pre‑trial discovery showing the commercial purpose of the assignment.