Matter of DePetris v. Traina

Summary

The New York Appellate Division, Second Department, reversed a judgment holding Joseph Traina, Jr. personally liable for a judgment against his limited liability company. The court held that although Traina dominated the LLC, the petitioner failed to establish that the domination was used to perpetrate a fraud or wrong, or that the LLC was undercapitalized or that assets were commingled. The petition to enforce the judgment against Traina was therefore denied and the proceeding dismissed.

Holdings

1. An appeal does not lie from a decision; the appeal from the Supreme Court's decision was dismissed.
2. The petitioner failed to establish a basis to pierce the LLC's corporate veil and hold Traina personally liable for the LLC's judgment; the petition was therefore denied and the proceeding dismissed.

Questions Presented

1. Whether the appeal from the trial court's decision was properly before the Appellate Division.
2. Whether the evidence established a basis to pierce the LLC's corporate veil and impose personal liability on its sole member for the LLC's judgment debt.

Disposition

reversed