In a May 18, 2011 decision by Justice Warshawsky, the court granted the plaintiff’s motion to enter a default judgment against a defendant on two construction contracts which the defendant breached by failing to pay general contracting fees. However, the court denied the motion as to a third contract on the grounds that the contract was between the plaintiff and a limited liability company, not the defendant. The court held that it could not pierce the corporate veil to hold the defendant liable. Because the plaintiff failed to establish that the defendant entered into a written agreement to be personally liable for the LLC’s contractual obligations, the court further denied the motion because the defendant’s oral promise to be personally liable was unenforceable under § 5-701(a)(2) of the General Obligations Law and was barred by the statute of frauds.
Born to Build, LLC v Saleh, Sup Ct, Nassau County, May 18, 2011, Warshawsky, J, Index No. 002345/11