Pegasus Aviation I, Inc. v Varig Logistica S.A.

Pegasus Aviation I, Inc. v Varig Logistica S.A. 2010 NY Slip Op 00375 [69 AD3d 483] January 19, 2010 Appellate Division, First Department Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. As corrected through Wednesday, March 10, 2010

Pegasus Aviation I, Inc., et al., Respondents,
v
Varig Logistica S.A. et al., Defendants, and MatlinPatterson Global Advisers, LLC, Appellant.

—[*1] Bracewell & Giuliani LLP, New York (Kenneth A. Caruso of counsel), for appellant.

Boundas, Skarzynski, Walsh & Black, LLC, New York (James T. Sandnes of counsel), for respondents.

Order, Supreme Court, New York County (Barbara R. Kapnick, J.), entered April 21, 2009, which denied MatlinPatterson's motion to dismiss the complaint, unanimously affirmed, with costs.

This is an action for replevin and damages for breach of airplane leases. Accepting the alleged facts as true and according plaintiff the benefit of every possible favorable inference (Leon v Martinez, 84 NY2d 83, 87-88 [1994]), the complaint sufficiently alleges that MatlinPatterson exercised complete domination over Varig Logistica—and was thus its alter ego—with respect to the transaction at issue, and that such domination facilitated the fraud or wrongdoing that resulted in plaintiff's injury (Matter of Morris v New York State Dept. of Taxation & Fin., 82 NY2d 135, 141 [1993]). Concur—Mazzarelli, J.P., Saxe, Acosta, DeGrasse and Manzanet-Daniels, JJ.