Supreme Court improperly dismissed the misappropriation of trade secrets cause of action as asserted against the individual defendants. In granting the motion to dismiss, the court limited its analysis to whether they completely dominated the corporation with respect to the transaction at issue, finding no basis to pierce the corporate veil. However, even where the corporate veil is not pierced, a corporate officer who participates in and benefits from the commission of a tort may be held individually liable. There is sufficient evidence that the individual defendants, for their personal gain, participated in the corporate defendant's allegedly tortious acts, thus raising issues of material fact as to their personal liability. The claim for misappropriation of trade secrets is reinstated as against them.
Century First Credit Solutions, Inc. v. Priority Capital, LLC, NY Slip Op 00224 (1st Dep't January 20, 2026)
