Newton D. Bartle, as Trustee in Bankruptcy of Westerlea Builders, Inc. v. Home Owners Cooperative, Inc.

Summary

The New York Court of Appeals affirmed the lower courts, holding that the corporate veil of Westerlea Builders may not be pierced and that the parent cooperative is not liable for Westerlea's debts, rejecting the plaintiff’s equitable pledge and unjust enrichment theories. Justice Van Voorhis dissented, arguing that the parent should be liable because the subsidiary was a mere instrumentality with no profit opportunity.