Legal Question in Credit and Debt Law in New York
Sueing a Corporation
I have a small claims judgment against a small construction corporation. The corporation owner tells me the corporation is no longer in business. Can I still collect my judgment from the owner directly? Does it matter whether or not the corporation has filed dissolution papers?
2 Answers from Attorneys
Re: Sueing a Corporation
No. Normally you cannot pierce the corporate veil to seek damages against an officer individually.
As a general rule, in New York the corporate veil may be pierced if the corporation fails to provide Worker's Compensation Insurance or if there is illegal conduct by a shareholder or if the corporation fails to pay sales or income tax or if there is fraudulent conduct by the officers of the corporation.
Mike.
Re: Sueing a Corporation
Also, if its a wage claim, there is a special law which sometimes allows such direct claims.
Also, if your claim was based on a tort theory (negligence, for example), the officers of a small corp. are usually the ones who operate it and would probably be liable.
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