Justice Louis York
Horowitz moved for dismissal of Burberry’s complaint asserting fraudulent conveyance and to pierce the corporate veil. A bench trial resulted in a verdict for Burberry permanently enjoining Horowitz from infringing on its trademark and awarding nearly $2.6 million in damages. Burberry now alleged Horowitz dissipated the assets of his company, Designers, by depleting its funds and conveying the website to RTC Fashion, also owned by Horowitz, to frustrate enforcement of the judgment. It asserted claims of fraudulent conveyance under state Debtor and Creditor Law, and claim to pierce the corporate veil. The court found evidence provided by Horowitz was sufficient to support an allegation of the use of corporate funds for personal use at both Designers and RTC. It ruled the “tangle of interrelated transactions” between Horowitz, Designers and RTC, instituted by Horowitz, defeated granting summary judgment in his favor, sustaining the claim to pierce the corporate veil. Also, Burberry’s allegations were sufficient to meet the liberal pleading standards of CPLR 3211(a)(7) regarding the fraudulent conveyance claims, denying Horowitz’s motion to dismiss.
