Howard Borress Enterprises Inc. v. CSJ LLC, 2005 N.Y. Misc. LEXIS 3530

Summary

The unit owner alleged that defendants caused severe damages to its condominium units when they began demolition work on a neighboring unit without approval and caused water pipes to freeze and burst. The officers argued that the LLC provided them protection from personal liability under Limited Liability Company Law § 609. The court determined that dismissal of the negligence and gross negligence claims was inappropriate because a factual issue existed as to whether the officers participated in the commission of a tort in furtherance of the business of the LLC and whether the LLC was a mere alter ego for its individual members. The officers' documentary evidence did not conclusively establish a defense as to the individual officers. However, the unit owner failed to make out a cause of action of fraud against the officers because no statements were ever made by defendants to the unit owner regarding defendants' intentions with respect to the units, and it was not even alleged that ...