Practice point: A plaintiff seeking to pierce the corporate veil must demonstrate that a court in equity should intervene because, in the transaction at issue, the owners exercised complete domination over the corporation, and thereby abused the privilege of doing business in the corporate form, with a resulting injury to the plaintiff.
Student note: The doctrine is an exception to the general rule that a corporation exists independently of its
owners, who are not personally liable for its obligations, and that
individuals may incorporate for the express purpose of limiting their
liability. The doctrine provides for the
imposition of individual liability on owners for the obligations of
their corporation in order to prevent fraud or to achieve equity.
Case: AZTE, Inc. v. Auto Collection, Inc., NY Slip Op 00711 (2d Dept. 2015)
Here is the decision.
Tomorrow's issue: Contributory negligence and summary judgment on a Labor Law claim.
