Practice point: One of the primary legitimate purposes of incorporating is
to limit or eliminate the personal liability of corporate principals..
Nevertheless, equity will intervene to pierce the corporate veil and permit the
assertion of claims against the individuals who control the corporation in
order to avoid fraud or injustice.Piercing the corporate veil
requires a showing that the individual defendants exercised complete dominion
and control over the corporation and used such dominion and control to commit a
fraud or wrong against the plaintiff which resulted in injury.
Student note: The mere claim that the corporation was completely dominated
by the defendants, or conclusory assertions that the corporation acted as their
alter ego, without more, will not suffice to support the equitable relief of
piercing the corporate veil.
Case: Flushing Plaza
Assoc. #2 v. Albert, NY
Slip Op 00177 (2d Dept. 2013).
Here is the decision.
Tomorrow’s issue: Falls on snow or ice.
