Tenants Seek to Pierce Corporate Veil Against Landlord

Tenants’ association of 24-unit rent-stabilized building sued landlord’s chief executive officer. Tenants claimed that landlord’s officer abused his corporate positions in a scheme to deregulate the property and deprive tenants of rights they possessed as third-party beneficiaries of certain government agreements. Landlord argued that tenants improperly sued him individually instead of the corporate entity that owned the building and asked the court to dismiss the case against him without a trial. The court ruled against landlord. There were enough facts involved for tenants to pursue their claim against the individual landlord. Tenants claimed that he exercised complete control of the corporate owner entity and that he committed fraud or a wrong against tenants.

363 Grand Ave. Tenants Assoc. v. Ali: Index No. 9121/2015, NYLJ No. 1202769249826 (Sup. Ct. Kings; 9/26/16; Rivera, J)