December 22, 2010

Corporations.

Practice point: For corporations to be alter egos, the parent must directly intervene in the subsidiary’s management so that the subsidiary's indeces of incorporation, directors and officers are completely ignored.

Students should note that a parent company will be liable for a subsidiary’s torts only if it exercises complete dominion and control over the subsidiary.

Case: Broxmeyer v. United Capital Corp., NY Slip Op 09204 (2d Dept. 2010)

Here is the decision.

Tomorrow's issue: Motion practice.