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Mohegan Lake Motors Inc. v. Maoli

Dealership Pleads Alter-Ego Liability Theory for Breach, Fraud Over Failed Purchase

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OPINION & ORDER

*1 Plaintiff Mohegan Lake Motors, LLC (“Mohegan Lake Motors” or “Plaintiff’) commenced this diversity action against Thomas Maoli (“Maoli”) and Celebrity Auto of Mohegan Lake, LLC (“Celebrity Auto”), a company owned by Maoli (collectively, “Defendants”).¹This lawsuit arises out of Celebrity Auto’s termination of a contract it had with Plaintiff to purchase Mohegan Lake Motors. Specifically, Plaintiff alleges causes of action for breach of contract, fraud, and breach of the covenant of good faith and fair dealing. The breach causes of action are alleged against Maoli by way of alter-ego liability and against Celebrity Auto directly. The fraud cause of action is alleged against Maoli only.Defendants now move to dismiss: (1) the claim for breach of the covenant of good faith and fair dealing (Claim II); (2) the fraud claim (Claim III); and (3) all claims against Maoli pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure for failure to state a claim upon which relief could be granted. For the reasons stated below, Defendants’ motion is GRANTED in part, and DENIED in part.

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