06-28-11 SANFORD CANTER VS. LAKEWOOD OF VOORHEES, ET AL. A-1759-10T1
This is a nursing home negligence action. Defendant Seniors Healthcare, Inc. is a limited partner of a New Jersey limited partnership that owns the nursing home. Plaintiff sought to hold Seniors Healthcare liable for the limited partnership's negligence through corporate veil-piercing principles.
By leave granted, Seniors Healthcare appeals from the denial of its motions for partial summary judgment and reconsideration on the issues of whether corporate veil-piercing principles apply to a New Jersey limited partnership, or alternatively, whether there is a genuine issue of material fact as to whether plaintiff established the veil-piercing factors.
We hold that equitable principles, such as veil piercing, may apply to a New Jersey limited partnership but in limited circumstances, such as where a limited partner takes or attempts action not within the safe harbor of N.J.S.A. 42:2A-27b, or dominates and uses the limited partnership to perpetrate a fraud, injustice, or otherwise circumvent the law. Because the record does not establish such circumstances, we reverse.
