Second Circuit Court of Appeals Affirms Summary Judgment Dismissing Veil-Piercing Claim Under Delaware Law

March 2, 2018

On February 28, 2018, the U.S. Court of Appeals for the Second Circuit affirmed the decision of the U.S. District Court for the Southern District of New York, in which the court ruled that neither of the two elements necessary under Delaware law to pierce the corporate veil were present. Montgomery McCracken partners Sidney S. Liebesman, David Dormont and Charles Palella and associate Michael C. Witsch successfully defended Theodore F. Schroeder against the claim brought by former co-founder of Skoop Media Associates, Brian S. Cohen, as part of an ongoing legal dispute involving the misappropriation of intellectual property underlying the popular social media platform Pinterest.

Plaintiff Brian S. Cohen had filed an appeal on April 28, 2017 from the district court’s ruling in Schroeder v. Cohen (C.A No. 15-cv-6881) granting summary judgment to Theodore F. Schroeder.  On appeal (Case No. 17-1301), the U.S. Court of Appeals for the Second Circuit, applying Delaware law under New York choice of law principles, found Cohen’s arguments to be without merit and concluded that no jury would find that there was any injustice or unfairness – a necessary element of a piercing the corporate veil claim.