February 6, 2009

Corporations.

Practice point: A corporate officer who participates in the commission of a tort may be held individually liable, regardless of whether the officer acted on behalf of the corporation in the course of official duties and regardless of whether the corporate veil is pierced.

Practitioners should note that this "commission of a tort" doctrine permits personal liability to be imposed on a corporate officer for misfeasance or malfeasance, which are affirmative tortious acts. Personal liability cannot be imposed on a corporate officer for nonfeasance, which is a failure to act.

Case: Peguero v. 601 Realty Corp., NY Slip Op 00443 (1st Dept. 2009)

The opinion is here.

Monday’s issue: Emergency vehicles.