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Corporate Officers Liable for Their Own Torts- No Corporate Veil Protection Afforded

On Behalf of | Mar 15, 2022 | Firm News

The Appellate Division, Second Department of the New York State Supreme Court’s September 2017 decision is a solemn reminder to all business owners that they cannot always hide behind the corporate veil to escape personal liability for their conduct. In North Shore Architectural Stone, Inc. v. American Artisan Construction, Inc., The Court held that the complaint adequately alleged the corporate officer personally participated in the acts constituting conversion and fraud and let stand the causes of action which sought to recover damages against that corporate officer, individually. The Court refused to dismiss the complaint against rejecting the defense that the corporate officer could not be held liable for tort merely because of his position in the company. Be reminded that it is no defense that the bad acts were performed by the individual while serving in a corporate capacity, were in the course of official duties, or furthered a corporate purpose or objective. The corporate officer will be held personally liable for the torts that they personally commit whether or not the stringent requirements of veil piercing are plead, established, or proven at trial.