THIS EXERCISE IS BASED ON THE CHAPTER ON CORPORATIONS
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? AND
(2) Suppose that the parties to this dispute were small, close corporations. How might that circumstance affect the result in this case?
Format for submission:
1. Cover page
2. Three (3) pages in length (excluding cover page and reference page)
3. Type written
4. Double-spaced (Times New Roman, pitch 12)
5. Correct grammar*** Very important…Papers replete with grammatical errors will receive a lower grade
6. Correct organization ***
7. Neatness / presentation****
8. APA style citation
9. Reference page, if applicable
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