New York Judges, Not Juries, Should Decide Whether to Pierce the Veil

New York Law Journal article by 

Brian D. Koosed

 

Anthony P. Badaracco 

 

Erica R. Iverson

 

New York Judges, Not Juries, Should Decide Whether to Pierce the Veil

The hallmark of the corporate form is its limited liability, which ensures that a judgment recovered against a corporation generally cannot be enforced against its shareholders. But 'generally' is an important qualifier. When the corporate form is used to commit fraud and the corporation has no assets to satisfy a judgment, a creditor may "pierce the corporate veil" and hold otherwise immune shareholders personally liable for the corporation's debts...