Business Laww

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THIS EXERCISE IS BASED ON THE CHAPTER ONCORPORATIONS
In New York City, 2406-12 Amsterdam Associates LLCbrought an action in New York state court against Alianza Dominicana andAlianza LLC to recover unpaid rent. The plaintiff asserted cause to pierce the corporateveil, alleging that Alianza Dominicana had made promises to pay its rent whilediscreetly forming Alianza LLC to avoid liability for it. According to 2406-12,Alianza LLC was 90 percent owned by Alianza Dominicana, had no employees , andhad no function but to hold Alianza Dominicanas assets away from it creditors.The defendants filed a motion to dismiss the plaintiffs claim. [2460-12Amsterdam Associates, LLC v. Alianza, LLC, 136 A.D..3d 512, 25 N.Y.S.2D 167 (1Dept. 2016)]

(1)  Assumethat 2406-12s allegations are true, are there sufficient grounds to pierceAlianza LLCs corporate veil? AND
 
(2)  Suppose that the parties to this disputewere small, close corporations. How might that circumstance affect the result in this case?
 
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