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The Comm. of the State Ins v. Ramos

Appellate Division of the Supreme Court of New York, First Department
Jan 6, 2011
80 A.D.3d 447 (N.Y. App. Div. 2011)

Summary

affirming denial of summary judgment motion when several questions of fact existed about the extent of defendants' domination and control over judgment debtor claimed to be an alter ego

Summary of this case from Okapi Partners, LLC v. Holtmeier

Opinion

No. 2271.

January 6, 2011.

Order, Supreme Court, New York County (Milton A. Tingling, J.), entered September 14, 2009, which denied plaintiffs motion for summary judgment holding defendants liable for the judgment entered against the judgment debtor and defendants' motions for summary judgment dismissing the complaint, unanimously affirmed, without costs.

Jan Ira Gellis, New York, for appellant-respondent.

Brian R. Hoch, White Plains, for Manuel Ramos and J.M.R. Concrete Corp., respondents-appellants.

Sullivan Gardner, PC, New York (Christopher Tumulty of counsel), for Lenny Pereira, respondent-appellant.

Before: Gonzalez, P.J., Saxe, McGuire, Acosta and Abdus-Salaam, JJ.


A number of factors suggest that defendant corporation is the alter ego of the judgment debtor, including the use of essentially the same name, the fact that the judgment debtor was not formally dissolved, and the overlap of employees, ownership, physical plant and equipment. In addition, the individual defendants collectively owned two-thirds of the judgment debtor. However, although plaintiff argues that the judgment debtor was "stripped of its assets," one of the individual defendants testified that equipment of the judgment debtor, including pumps, trucks and other vehicles, was purchased at fair market value. Moreover, the other principal of the judgment debtor has no ownership in defendant corporation. He testified that he made the decision to cease the judgment debtor's operations and that he so decided because the corporation was losing money and his health had declined. Furthermore, the individual defendants, the principals of defendant corporation, invested substantial sums in defendant corporation. On this record, whether the individual defendants sufficiently dominated the judgment debtor cannot be determined as a matter of law ( see Wm. Passalacqua Bldrs., Inc. v Resnick Devs. S., Inc., 933 F2d 131, 138-139). Similarly, and particularly because it is not clear that the individual defendants knew of the liability to plaintiff, the record does not demonstrate conclusively the requisite wrongful or unjust act toward plaintiff ( see Matter of Morris v New York State Dept. of Taxation Fin., 82 NY2d 135, 142).


Summaries of

The Comm. of the State Ins v. Ramos

Appellate Division of the Supreme Court of New York, First Department
Jan 6, 2011
80 A.D.3d 447 (N.Y. App. Div. 2011)

affirming denial of summary judgment motion when several questions of fact existed about the extent of defendants' domination and control over judgment debtor claimed to be an alter ego

Summary of this case from Okapi Partners, LLC v. Holtmeier

In Ramos, plaintiff Commissioners of State Insurance Fund, the same plaintiff as in the action herein, alleged fraudulent conveyances by former officers of a judgment debtor corporation that was eventually rendered insolvent.

Summary of this case from Comm'rs of the State Ins. Fund v. Wolf
Case details for

The Comm. of the State Ins v. Ramos

Case Details

Full title:THE COMMISSIONERS OF THE STATE INSURANCE FUND, Appellant-Respondent, v…

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Jan 6, 2011

Citations

80 A.D.3d 447 (N.Y. App. Div. 2011)
2011 N.Y. Slip Op. 35
915 N.Y.S.2d 241

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