Kats v. East 13th Street Tifereth Place, LLC
Opinion of the Court
Ordered that the order is affirmed, with costs.
Upon a motion to dismiss for failure to state a cause of action pursuant to CPLR 3211 (a) (7), the complaint must be liberally construed in the light most favorable to the plaintiff, accepting the facts as alleged to be true (see Leon v Martinez, 84 NY2d 83, 87-88 [1994]; Wilner v Allstate Ins. Co., 71 AD3d 155, 159 [2010]).
Here, the plaintiffs failed to state a cause of action against the defendants Rychik Development Corporation (hereinafter RDC) and Sam Rychik. In their complaint, the plaintiffs alleged various claims, including breach of contract and fraud, against the defendant East 13th Street Tifereth Place, LLC (hereinafter the Seller), arising from their purchase of condominium units from the Seller. Rychik is a member of the Seller, and an officer and shareholder of RDC, which built the condominium units. The plaintiffs contend that their complaint adequately states a basis for imposing liability on Rychik and RDC for the causes of action they asserted against the Seller on a theory that those defendants induced the Seller to breach the sales contracts for their own profit.
Contrary to the plaintiffs’ contention, the liability of RDC cannot be premised on the theory they propound, which is an exception to the general rule of immunity for corporate officers, and not for entities, who act in good faith in their corporate capacity (see Murtha v Yonkers Child Care Assn., 45 NY2d 913, 915 [1978]; AHA Sales, Inc. v Creative Bath Prods., Inc., 58 AD3d 6, 23 [2008]; BGW Dev. Corp. v Mount Kisco Lodge No. 1552 of Benevolent & Protective Order of Elks of U.S. of Am., 247 AD2d 565 [1998]). Nor does the complaint adequately allege this basis of liability against the individual defendant Rychik. “To hold officers or employees liable for causing their corporation to breach its contract, it is not sufficient merely to allege, in conclusory form, that they acted for personal profit or com
The plaintiffs’ remaining contentions are without merit. Skelos, J.P., Angiolillo, Leventhal and Roman, JJ., concur.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.