A.J. Temple Marble & Tile, Inc., Respondent v. Union Carbide Marble Care, Inc., Appellants

Summary

The New York Court of Appeals held that General Business Law § 691(3) imposes joint and several liability only on persons whose actions materially aid a franchise fraud, limiting liability to those who materially assist the violation. Accordingly, the franchise‑sales‑act claim was dismissed against all non‑franchisor defendants except Richard Broockmann, whose alleged conduct satisfied the material‑aid requirement. Chief Judge Kaye concurred in the result but argued that the narrow reading defeats the statute’s purpose.