In New York City, 2406-12 Amsterdam Associates, LLC, brought an action in a New York state court
Question:
In New York City, 2406-12 Amsterdam Associates, LLC, brought an action in a New York state court against Alianza Dominicana and Alianza, LLC, to recover unpaid rent. The plaintiff asserted cause to pierce the corporate veil, alleging that Alianza Dominicana had made promises to pay its rent while discreetly forming Alianza, LLC, to avoid liability for it. According to 2406-12, Alianza, LLC, was 90 percent owned by Alianza Dominicana, had no employees, and had no function but to hold Alianza Dominicana’s assets away from its creditors. The defendants filed a motion to dismiss the plaintiff’s claim. Assuming that 2406-12’s allegations are true, are there sufficient grounds to pierce the corporate veil of Alianza, LLC? Discuss. [2406-12 Amsterdam Associates, LLC v. Alianza, LLC, 136 A.D.3d 512, 25 N.Y.S.3d 167 (1 Dept. 2016)] (See Piercing the Corporate Veil.)
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Business Law Text And Cases
ISBN: 9780357129630
15th Edition
Authors: Kenneth W. Clarkson, Roger LeRoy Miller