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WORLD WIDE PACKAGING, LLC v. CARGO COSMETICS, LLC

Index No. 653546/18. Appeal No. 13486N. Case No. 2019-05274.

193 A.D.3d 442 (2021)

144 N.Y.S.3d 41

2021 NY Slip Op 02088

World Wide Packaging, LLC, Respondent, v. Cargo Cosmetics, LLC, et al., Appellants.

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

Decided April 1, 2021.

Attorney(s) appearing for the Case

Cervini Swanson LLP, New York ( Scott L. Swanson of counsel), for appellants.

Fein Such Law Group, Westbury ( Andrew M. Grenell of counsel), for respondent.

Concur—Acosta, P.J., Webber, Kennedy, Shulman, JJ.

In New York, a parent corporation generally cannot be held liable for the debts of its wholly owned subsidiary, nor can it be bound by the contract of that subsidiary (see Horsehead Indus. v Metallgesellschaft AG., 239 A.D.2d 171, 172 [1st Dept 1997]). There are two circumstances under which a parent will be held liable as a party to its subsidiary's contract: (1) if the parent manifests an intent to be bound by the contract; or...

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