Commingling And Personal Piggy Bank Leads To Summary Judgment On Veil Piercing Claims

In Webmediabrands, Inc. v. Latinvision, Inc., No. 601048/2010, the Supreme Court (J. Friedman)  pierced the corporate veil at the summary judgment stage.

Under New York law, the factors used to determine whether a court should allow plaintiffs to pierce the corporate veil include "a failure to adhere to corporate formalities, inadequate capitalization, commingling of assets, use of corporate funds for personal use," an "overlap in ownership and directorship," and "common use of office space and equipment." For this reason, corporate veil piercing or alter ego claims of liability are fact-laden and, typically, are not considered well suited for resolution at the summary judgment stage.