Realty Law Digest
In his latest Realty Law Digest, Scott Mollen discusses 'W. Houston Prop. v. NY Pilates NYC,' where the landlord failed to plead allegations sufficient to state a cause of action for alter ego liability, and 'Higgins v. 120 Riverside Blvd. at Trump Place Condominium,' where the plaintiff was denied relief under the FHA for failure to state a claim.
December 07, 2021 at 12:30 PM
18 minute read
Commercial Landlord-Tenant—Piercing the Corporate Veil—Landlord Failed To Plead Allegations Sufficient To State Cause of Action for Alter Ego Liability— Allegations Were "Wholly Conclusory" and Only Recited "Elements of the Claim Upon Information and Belief"—Complaint Failed To Allege How Other Defendants Used Domination of Entity To Commit Wrong Against Landlord
A landlord commenced a breach of contract action against a commercial tenant to recover unpaid rent. The rent was due pursuant to a commercial lease with Defendant "A." The landlord also sought to recover against other defendants on a "corporate veil"-piercing theory and under the New York State Debtor and Creditor Law (DCL). The defendants moved to dismiss several causes of action. The court granted the defendant's motion.
The complaint alleged that the landlord and "A" entered into a ten-year commercial lease dated March 22, 2018. "A" allegedly failed to make rent and related payments in the amount of $258,078.84 from March 1, 2020 through November 1, 2020. The first cause of action, for breach of a contract, sought to recover the unpaid rent against "A." The second cause of action sought to recover unpaid rent as against all defendants other than "A" by "piercing the corporate veil." The third and fourth courses of action sought to recover the unpaid rent as against all defendants by "voiding any conveyances and/or transfers of the assets of ("A") to the other defendants under (DCL) §§274, 275 and 276." A fifth cause of action asserted a claim for unjust enrichment against all defendants.
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