The courts will disregard the corporate form, or pierce the corporate veil, whenever necessary to prevent fraud or to achieve equity. A plaintiff seeking to pierce the corporate veil must show that (1) the owners exercised complete domination of the corporation in respect to the transaction attacked, and (2) that the domination was used to commit a fraud or wrong against the plaintiff which resulted in plaintiff's injury. The mere claim that a corporation was completely dominated by its owners or conclusory claims that a corporation was the owners' alter ego do not merit the equitable relief of piercing the corporate veil. The court will consider factors such as whether there was a failure to adhere to corporate formalities, the lack of capitalization, co-mingling of assets, and the personal use of corporate funds.
Anderson v. ML Real Estate Holdings, LLC, NY Slip Op 05931 (2d Dep't October 29, 2025)
