Partner Ben Thompson was quoted in a story covering our ongoing matter between an insurance software vendor client and a development contractor. The matter was briefed for dismissal before Hon. Whelan of the Suffolk County Commercial Division, New York Supreme Court, on the basis that the plaintiff failed to implead the contracting party in its attempt to pierce the corporate veil against the defendant.
The Court ruled that the contracting party must be named and served before the case can proceed:
“Judge Adds Party in Corporate Veil Piercing Case,” New York Commercial Litigation Insider. ALM Media, LLC, 9 Dec. 2014.
A Commercial Division justice in Suffolk County has ruled that an insurance software vendor that allegedly owes more than $465,000 to a subcontractor must be brought into a corporate veil piercing case in which the vendor’s alter ego is allegedly an insurance company.
One of Morstan’s counsel, Benjamin S. Thompson, a partner with Thompson Bukher in New York, said the result in the case is effectively the same as if the complaint had been dismissed. “The judge has required that IPS bring in the contracting party and by doing so it will implicate the arbitration provision directly” and the case should be stayed in lieu of arbitration, Thompson said.
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