Piercing the Corporate Veil: Pyrrhic Victories and the ‘Fraud or Wrong’ Standard in Recent First Department Decisions

Two recent First Department decisions now shed light on a different facet of the veil-piercing doctrine — specifically, what constitutes a sufficient showing of “fraud or wrong” to justify disregarding the corporate form for purposes of liability. Partners Lara Flath and Julie Cohen and associates Katherine Kazmin and Brian Tang discuss how these two decisions apply and refine the well-established two-prong test for veil-piercing. They also consider the implications of these decisions for commercial litigation in New York.