Legal Question in Business Law in New York
Piercing the Corporate Veil in a small claims case
I am about to file a small claims case in Suffolk County, NY (Huntington). The defendant (a florist) contracted me to install an awning and will not pay for it. I believe that she is an s-corporation. She signed the contract without her corporate title, but I know that she is the owner and indistinguishable from the corp. Should I name her, her corporation or her and her husband (so that I can lein on personal property that names both of them as owners) as the Defendant)s)? I have done some research resulting in conflicting information.
Thank you for your assistance.
3 Answers from Attorneys
Re: Piercing the Corporate Veil in a small claims case
The action would be against her and the corporation. Since the husband did not sign the contract it would be improper to sue him.
I would also suggest asking for the small claims booklet when you file your claim at the court. The booklet gives valuable information as to your conduct in court.
Mike.
Re: Piercing the Corporate Veil in a small claims case
You should sue both her and her corporation. The fact that she failed to indicate her corporate tile after her signature, renders her personally liable for the debt. Moreover, while small claims court provides small yellow booklets to inform you about the procedures in small claims court, my firms provides more informative booklets which would better assist you in preparing your case. Should you so desire, I will send you one of our booklets, free of charge, if you merely send me an e-mail requesting a small claims booklet and providing us with an address to which you would like it mailed. Good Luck. Andrew J. Campanelli (516) 746-1600 [email protected]
Re: Piercing the Corporate Veil in a small claims case
You can sue the woman, individually, as well as in her corporate capacity, but you cannot sue her husband unless the work was performed on their property, not her sole business property. If you cite the husband without authority, you could be subject to a claim for frivolous litigation.
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