Scott Mollen Realty Law Digest
Scott Mollen discusses "Etage Real Estate LLC v. Stern," where the court found that the defendants' transfer of interest in their sole property for zero consideration justified piercing the corporate veil, and "Matter of United Full Gospel Church of God v. Bd. Of Appeals," where the court annulled a village board of appeals denial of a petition for a special use permit/area variance for religious use.
October 05, 2021 at 11:06 AM
14 minute read
Piercing the Corporate Veil—Billionaire's Row—Defendants Transferred Interest in Property, Its Sole Significant Asset, for Zero Consideration—Court Held That Transfer "Justifies Piercing the Corporate Veil"
In 2012, the two defendant developers presented to the plaintiffs, a financial statement purporting to show that the defendants' company ("A") had assets of more than $200 million. Based thereon, the plaintiffs loaned "A" $3 million. The interest was to be $2 million. The court stated that "apparently in an attempt to avoid usury issues, the deal was structured so that plaintiffs were to provide consulting services and receive several hundred thousand dollars in consulting fees."
The defendants asserted that the plaintiffs never perform the services. However, the court noted that "subsequent events have rendered this claim moot."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
US Law Firm Leasing Up Nearly 30% Through Q3, With a Growing Number of Firms Staying in Place
3 minute read
Deposing Former Mayor Bill de Blasio; Misrepresentations To Induce Investment: This Week in Scott Mollen’s Realty Law Digest
Doctrine of ‘Practical Location,’ Breach of a Commercial Lease: This Week in Scott Mollen’s Realty Law Digest
Law Firms Mentioned
Trending Stories
- 1Revenue Up at Homegrown Texas Firms Through Q3, Though Demand Slipped Slightly
- 2Warner Bros. Accused of Misleading Investors on NBA Talks
- 3FTC Settles With Security Firm Over AI Claims Under Agency's Compliance Program
- 4'Water Cooler Discussions': US Judge Questions DOJ Request in Google Search Case
- 5Court rejects request to sideline San Jose State volleyball player on grounds she’s transgender
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
