Justice Kim Dollard
Agai moved for summary judgment against respondents arguing Diontech Consulting's three principals, Mihalatos, and Stylianos and Sokrates Antoniou, were operating a corporation without corporate formalities for their own unjust enrichment, and to avoid judgments obtained by Agai. The Antoniou respondents cross-moved for summary judgment in their favor. Agai sought to pierce the corporate veil to enforce the judgment under CPLR Article 52. The court noted the concept of piercing the corporate veil was an exception to the general rule—a corporation existed independently of its owners, who were not personally liable for its obligations—allowing the imposition of personal liability on owners for obligations of the corporation. Deposition transcripts clearly established respondents failed to adhere to any corporate formalities in running Diontech, including evidence that the Antoniou respondents used corporate accounts for personal expenses and commingled corporate and personal assets, maintaining Diontech as a sham entity to avoid creditors and legal liability. The court found evidence made it clear Diontech was used to unlawfully avoid creditors and injure Agai personally, granting his motion for summary judgment.
