In New York City, 2406-12 Amsterdam Associates LLC brought an action in a New York state court

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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 -led a motion to dismiss the plaintiffs claim.

(a) Assuming that 2406-12's allegations are true, are there sufficient grounds to pierce Alianza LLC's corporate veil? Discuss.

(b) Suppose that the parties to this dispute were small, close corporations. How might that circumstance affect the result in this case?

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The Legal Environment of Business Text and Cases

ISBN: 978-1305967304

10th edition

Authors: Frank B. Cross, Roger LeRoy Miller

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