711 Kings Highway Corp. v. F.I.M.‘s Marine Repair Serv. Inc.

711 Kings Highway Corp. (plaintiff) leased property to F.I.M.'s Marine Repair Serv. Inc. (defendant) for use as a movie theatre. Marine Repair's certificate of incorporation limited its purposes to marine activities such as marine repairs. 711 Corp. sought to invalidate the lease, arguing that operating a movie theatre exceeded the corporate powers conferred by Marine Repair's charter (ultra vires).

Whether a party may challenge a corporation's act as ultra vires under New York law, where the statute bars use of the ultra vires doctrine except in specified circumstances.