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

NEW YORK SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT


January 19, 2010

PEGASUS AVIATION I, INC., ET AL., PLAINTIFFS-RESPONDENTS,
v.
VARIG LOGISTICA S.A., ET AL., DEFENDANTS,
MATLINPATTERSON GLOBAL ADVISERS, LLC, DEFENDANT-APPELLANT.

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

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

This opinion is uncorrected and subject to revision before publication in the Official Reports.

Mazzarelli, J.P., Saxe, Acosta, DeGrasse, Manzanet-Daniels, JJ.

603076/08

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]).

THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.

20100119

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