Appellate Division, First Department · September 24, 2026 · 2026 NY Slip Op 05460
The “transaction attacked” in veil-piercing can be the transfer that emptied the till
Matter of UBS Sec. LLC v Dondero
Read the official decision: 2026 NY Slip Op 05460
Holding The court held that the ‘transaction attacked’ in a veil-piercing claim can be a subsequent asset transfer designed to frustrate judgment recovery, not just the original underlying transaction. While the alter ego claim against Dondero survived for the corporate entities, it was dismissed regarding limited partnerships and against Ellington for lack of sufficient allegations of complete domination.
Why it matters
Clarifies the scope of the ‘transaction attacked’ element in New York veil-piercing cases, allowing claims based on post-judgment asset dissipation.
Addresses the applicability of veil-piercing doctrines to limited partnerships, distinguishing them from corporations for pleading purposes.
The court’s words
the 'transaction attacked' need not be the underlying transaction itself, but can be a subsequent transaction designed to frustrate a party's ability to recover
2026 NY Slip Op 05460, at the official text
That Ellington was an influential corporate officer who served as the right-hand of the individual who allegedly dominated the corporate entities does not expose Ellington to alter ego liability
2026 NY Slip Op 05460, at the official text
New York law controls because UBS Securities LLC, one of the judgment creditors that claims to have been defrauded, is headquartered and has its principal place of business in New York
2026 NY Slip Op 05460, at the official text
| Court | Appellate Division, First Department |
|---|---|
| Decided | September 24, 2026 |
| Citation | 2026 NY Slip Op 05460 |
| Area of law | Corporate, Securities and Business · Civil Procedure |
| Week | Week ending September 26, 2026 |
| Official text | Official decision: 2026 NY Slip Op 05460 |
| Publication status | Slip opinions are uncorrected and subject to revision before publication in the Official Reports. |
| Source feed | New York slip opinion page |
| Law Watch record id | 121 |
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Recommended citation
ESQ HQ, New York Law Watch, Matter of UBS Sec. LLC v Dondero, 2026 NY Slip Op 05460 (Appellate Division, First Department, September 24, 2026), https://esqhq.com/decisions/2026-ny-slip-op-05460/
How this record was made
Holding drafted by Law Watch’s in-house model, graded by three reviewers; every quotation verified word for word against the official text.
Read how Law Watch worksFeatured by Eric McAvey, November 14, 2026.