Tenant Can't Pierce Corporate Veil

Prospective tenants sued landlord and its rental agent, claiming discrimination against those who sought to use a Section 8 voucher for the payment of rent. Before any substantive decision was made in the case, tenants asked the court to compel landlord to produce documents so that it could pierce the corporate veil and hold individuals behind the LLC responsible for any damages. The court ruled against tenants, who appealed and lost. It was too early in the case to seek this remedy. The law generally exempted individuals from personal responsibility for an organization's debts, obligations, and liabilities. But this exemption didn't apply to discriminatory acts by a person with an ownership interest in, or the power to make decisions for, the organization. However, there was no reason, at this early stage of the case, to seek to pierce the corporate veil.

Solomons v. Douglas Elliman LLC and 23 Manhattan Valley North LLC: NYLJ, 5/24/12, p. 25, col. 4 (App. Div. 1 Dept.; Tom, JP, Sweeny, Renwick, Freedman, Abdus-Salaam, JJ)