Question
In New York City, 2406-12 Amsterdam Associates LLC brought an action in New York state court against Alianza Dominicana and Alianza LLC to recover unpaid
In New York City, 2406-12 Amsterdam Associates LLC brought an action in 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 it creditors. The defendants filed a
motion to dismiss the plaintiff's claim. [2460-12 Amsterdam Associates, LLC v. Alianza, LLC,
136 A.D..3d 512, 25 N.Y.S.2D 167 (1 Dept. 2016)]
(1) Assume that 2406-12's allegations are true, are there sufficient grounds to pierce Alianza
LLC's corporate veil?
(2) Suppose that the parties to this dispute were small, close corporations. How might that
circumstance affect the result in this case?
Need indepth details for both
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