You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

Michaels Electrical Supply Corp. v. Trott Electric, Inc.

Citations: 231 A.D.2d 695; 647 N.Y.S.2d 839; 1996 N.Y. App. Div. LEXIS 9732

Court: Appellate Division of the Supreme Court of the State of New York; September 30, 1996; New York; State Appellate Court

Narrative Opinion Summary

In a breach of contract action, the plaintiff appealed a decision from the Supreme Court of Nassau County that denied its motion for an attachment of the defendant's residence. The appellate court upheld the lower court's decision, emphasizing the strict application of attachment due to its severe nature and deviation from common law. The plaintiff's attempts to pierce the corporate veil and reach the personal assets of the defendant and his wife were unsuccessful, as no valid justification was provided. Furthermore, the plaintiff failed to establish that the defendants engaged in fraudulent conduct aimed at evading creditors, which would have supported the issuance of an attachment. The plaintiff also could not show a likelihood of success on its claims under Lien Law article 3-A. The appellate court found the remaining arguments presented by the plaintiff to be without merit, affirming the original ruling and denying the attachment request.

Legal Issues Addressed

Attachment as a Provisional Remedy

Application: The court emphasized that attachment is a harsh remedy and must be applied strictly, only when justified by the circumstances.

Reasoning: The court emphasized that attachment is a provisional remedy intended to secure a debt by temporarily levying the debtor's property, and it is applied strictly due to its harsh nature and divergence from common law principles.

Fraudulent Conduct and Attachment

Application: The plaintiff failed to prove that the defendants engaged in fraudulent conduct to evade creditors, which would have been necessary to justify an attachment.

Reasoning: Additionally, the plaintiff failed to show that the defendants had engaged in fraudulent conduct to evade creditors, which would have warranted attachment.

Likelihood of Success on the Merits

Application: The plaintiff did not demonstrate a likelihood of success on its claims under Lien Law article 3-A, which was necessary to support the attachment request.

Reasoning: The court also noted that the plaintiff did not demonstrate a likelihood of success on its claims under Lien Law article 3-A.

Piercing the Corporate Veil

Application: The plaintiff's attempt to pierce the corporate veil was unsuccessful because there was no justification to access the personal assets of the individual defendant and his wife for a corporate debt.

Reasoning: The plaintiff could not justify piercing the corporate veil to access the personal assets of the individual defendant and his wife to secure a debt allegedly owed by a corporate entity.