Corporate Officers May be Held Liable for Torts Committed in the Course of Their Duties

On August 9, 2023, the Second Department issued a decision in Gold v. 22 St. Felix, LLC, 2023 NY Slip Op. 04194, holding that corporate officers may be held liable for torts committed in the course of their duties, explaining:

Generally, a member of a limited liability company cannot personally be held liable for any debts, obligations or liabilities of the limited liability company, whether arising in tort, contract or otherwise. The concept of piercing the corporate veil is an exception to this general rule, permitting, in certain circumstances, the imposition of personal liability on members for the obligations of the limited liability company.

. . .

Additionally, contrary to the defendants’ contention, the plaintiffs adequately pleaded a cause of action alleging negligence against Assaf. Although corporate officers may not be held personally liable on contracts of their corporations, provided they did not purport to bind themselves individually under such contracts, corporate officers may be held personally liable for torts committed in the performance of their corporate duties. Here, the plaintiffs adequately alleged that Assaf personally engaged in acts of negligence in performing repairs at the home.

(Internal quotations and citations omitted).

Stay Informed

Get email updates anytime we publish to one or all of our blogs.

Stay informed!
Sign up for email alerts and notifications here.
Read more about our Complex Commercial Litigation practice.