Meachum v. Outdoor World Corp.
| Decision Date | 21 January 1997 |
| Citation | 652 N.Y.S.2d 749,235 A.D.2d 462 |
| Parties | Edmond MEACHUM, et al., Respondents, v. OUTDOOR WORLD CORPORATION, et al., Appellants. |
| Court | New York Supreme Court — Appellate Division |
Keck, Mahin & Cate, New York City (Bedell A. Tippins and Deborah L. Kuhn, of counsel; Cary B. Samowitz, on the brief), for appellants.
Sedgwick, Detert, Moran & Arnold, New York City (Peter M. Kutil, Howard R. Cohen, and Jay L. Taylor, of counsel), for respondents.
Before ROSENBLATT, J.P., and SULLIVAN, ALTMAN and GOLDSTEIN, JJ.
MEMORANDUM BY THE COURT.
In an action, inter alia, to recover damages for fraud and breach of contract, the defendants appeal, as limited by their brief, from so much of an order of the Supreme Court, Queens County (Goldstein, J.), dated November 20, 1995, as denied those branches of their motion which were to (1) dismiss the complaint insofar as asserted against the defendants Resorts USA, Inc., Rank Ahnert, Inc., and Rank America, Inc., for failure to state a cause of action, and (2) dismiss the third cause of action insofar as it is asserted by the plaintiffs Adrian Montanez and Deborah Montanez.
ORDERED that the order is affirmed insofar as appealed from, with costs.
Contrary to the defendants' contention, the Supreme Court properly denied that branch of their motion pursuant to CPLR 3211 which was to dismiss the complaint insofar as asserted against the defendants Resorts USA, Inc., Rank Ahnert, Inc., and Rank America, Inc., for failure to state a cause of action. While the plaintiffs entered into written contracts only with the defendant Outdoor World Corporation (hereinafter Outdoor), the complaint alleges numerous instances in which the remaining defendants held themselves out as creating, controlling, and being responsible for the vacation club in which the plaintiffs purchased memberships. Therefore, regardless of whether New York law or Pennsylvania law applies, the plaintiffs' allegations may support recovery from defendants other than Outdoor on a "piercing the corporate veil" theory (see generally, Matter of Morris v. New York State Dept. of Taxation & Fin., 82 N.Y.2d 135, 603 N.Y.S.2d 807, 623 N.E.2d 1157; Lumax Indus. v. Aultman, 543 Pa. 38, 669 A.2d 893). Moreover, even if liability under this theory was unsupportable, the allegations of the complaint clearly suffice to set forth independent claims sounding in fraud and misrepresentation against the various defendants regarding, inter alia, the quality and availability of vacation facilities. Therefore, assuming the truth of the allegations and according them every favorable...
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