Damato

This is an appeal from a summary judgment by the assignee of a suspended corporation’s contractual rights, who contests the trial court’s conclusion that restoration of the corporation’s powers did not override the opposing parties’ statutory right to treat the contracts as voidable. Because we agree with the trial court’s conclusion, we will affirm the judgment.

Background

In mid-1983 defendant Slevin agreed to purchase a cafe, and the sublease for the premises on which the cafe was located, from Correct, Inc., a California corporation whose president was plaintiff Frederick Damato. After taking possession of the premises and making several payments towards the purchase price, Slevin abandoned the property. In September of 1985 Damato, as Correct’s assignee, commenced this action by filing a complaint for damages alleged to have been caused by the breach of these agreements.

In May of 1987 Slevin moved for summary judgment. The grounds of the motion were that Correct’s corporate powers had been suspended in 1981 for nonpayment of taxes; that the purported assignment from Correct to Damato was ineffective; and that the sale and sublease agreements between Correct and…