Judge Lorna Schofield
Teitelbaum was a director and chairman of Island One Inc. He also controlled Island One by indirectly owning its majority shareholder. Under their Sept. 1, 2011 agreement, Homewood Capital LLC was to be Island One’s “manager,” and Island Two LLC its “advisor.” Island Two was to receive an annual $125,000 “Advisor Fee” in monthly installments, until May 2016. Suing Island One for contract breach, Island Two alleged that Teitelbaum and Homewood induced Island One to breach the contract so that the Advisor Fee would be paid to Homewood in order to promote his personal interests contrary to those of Island One. Finding its elements met, district court denied Teitelbaum dismissal of Island Two’s claim of tortious interference with contract. Citing Richbell Info. Servs. v. Jupiter Partners, the court rejected Teitelbaum’s effort to assert himself to be Homewood’s alter ego, noting that the corporate veil “will not be pierced in [reverse] for the benefit of the corporation or its individual shareholders.” Further, he and Homewood were strangers to the contractual relationship between Island One and Island Two, nor did the allegations of his relationship with island One relieve him from liability for interference with contract.
