Practice point: A business may incorporate for the express purpose of escaping personal liability, but equity will pierce the corporate veil and permit the imposition of personal liability in order to avoid fraud or injustice.
Practitioners should note that a party seeking to pierce the corporate veil must show that the corporation’s owner exercised complete domination over it in the transaction at issue, and that this domination was used to commit a fraud or wrong.
Case: Shkolnik v. Krutoy, NY Slip Op 06677 (2d Dept. 2009)
The opinion is here.
Tomorrow’s issue: Municipalities Law.
