Commercial Division Update

The Wrongful Act Requirement for Piercing the Corporate Veil

, New York Law Journal


In their Commercial Division Update, George Bundy Smith and Thomas J. Hall review recent decisions that make it clear that abuse of the corporate form is not enough to impose a corporation's liabilities on its shareholders. A party seeking to pierce the corporate veil needs to prove a wrong committed against it, and must also establish a causal connection between the abuse of the corporate form and the wrongful conduct for which relief is sought.

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