New York Supreme Court Pierces the Corporate Veil and Holds Individual Liable
In a landmark case in March, 2008, The New York Supreme Court held that Geneva Corporation could successfully pierce the corporate veil of American Lending Services, LLC and decided that Mr. Williams of ALS was liable. The two corporations entered into a consulting agreement when ALS approached Geneva to secure funding for a $60-70 million Casino Project to build a new water park and casino. Geneva brought seven causes of action against ALS including breach of contact, promissory estoppel, unjust enrichment, and fraudulent inducement. The most serious allegation made by Geneva was that Mr. Williams’s failed to place $100,00 in an escrow fund. Geneva prevails in piercing the corporate veil proving that ALS exercised "complete domination" in respect to the entire transaction. Piercing the corporate veil is a unique and extreme remedy that is rarely granted by the Courts.
