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LLC v. LLC (2011)

Supreme Court, Appellate Division, First Department, New York.

Hedge Fund Capital Partners, LLC, et al., Plaintiffs–Respondents, v. Thor Asset Management, Inc., Defendant, Systematic Alpha Management LLC, Defendant–Appellant.

5226

Decided: May 31, 2011

Mazzarelli, J.P., Friedman, Catterson, Manzanet–Daniels, Román, JJ.

Kramer Levin Naftalis & Frankel LLP, New York (Philip S. Kaufman of counsel), for appellant. Gersten Savage, LLP, New York (David Lackowitz of counsel), for respondents.

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Order, Supreme Court, New York County (Richard B. Lowe, III, J.) entered November 15, 2010, which denied defendant-appellant Systematic Alpha Management LLC's motion to dismiss the complaint, unanimously modified, on the law, to dismiss the second cause of action, for fraud, and otherwise affirmed, without costs.

The motion to dismiss was properly denied, as plaintiffs have adequately stated a cause of action to hold defendants liable for certain commissions under a theory of piercing the corporate veil (see Gateway I Group, Inc. v. Park Ave. Physicians, P.C., 62 AD3d 141, 145–147 [2009] ).

The fraud claim, however, should have been dismissed as duplicative of the breach of contract claim (see Stewart v. Maitland, 39 AD3d 319 [2007];  Glanzer v. Keilin & Bloom, 281 A.D.2d 371, 372 [2001] ).

We have reviewed appellant's remaining contentions and find them unavailing.

THIS CONSTITUTES THE DECISION AND ORDER

OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.

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CLERK

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LLC v. LLC (2011)

Docket No: 5226

Decided: May 31, 2011

Court: Supreme Court, Appellate Division, First Department, New York.

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