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In a case of first impression in New Jersey, the state's appellate court extended corporate veil piercing ' the equitable principle of imposing liability to individuals generally protected by statute ' to limited partnerships under certain conditions. Following Delaware's lead, the court held that corporate veil piercing may be applied in the limited partnership context if an individual partner's actions exceed the bounds of the limited partnership statute's “safe harbor,” which offers protections and limits liability, or the partner clearly and convincingly “dominates” the partnership and uses it to perpetrate a fraud or injustice.
Facts
In Canter v. Lakewood of Voorhees, et al., ___ N.J. Super. ___ (App. Div. 2011), 2011 WL 2536176 (Jun. 28, 2011), plaintiff brought a negligence action arising from injuries he sustained while at Lakewood of Voorhees LP, a New Jersey-licensed long-term care facility (hereinafter “nursing home” or “Lakewood”).
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