Thursday, September 3, 2015

Personal liability for corporate violations of the Labor Law.

Practice point:  The Appellate Division reversed dismissal of the complaint, finding that, at this stage of litigation, it cannot be said that the plaintiff has failed to state a cognizable cause of action against the individual defendants for alleged violations of Labor Law §§ 191 and 195. The Appellate Division explained that, while corporate shareholders and officers generally are not personally liable for corporate violations of the Labor Law, the plaintiff alleged adequate facts to state a cause of action against each of the individual defendants in his or her distinct capacity as the plaintiff's employer within the meaning of the statute.

Student note:  On a motion to dismiss pursuant to CPLR 3211(a)(7) for failure to state a cause of action, the facts alleged in the complaint are accepted as true and are given a liberal construction to afford the pleading party every possible favorable inference, and the court's inquiry is limited to whether the pleading states any cognizable cause of action.

Case:  Cohen v. Finz & Finz, P.C., NY Slip Op 06654 (2d Dept. 2015)

Here is the decision.

Tomorrow's issue:  The requirements for expert testimony.