Cullen and Dykman Secures $7.7 Million Judgment and Veil Piercing Trial Victory in SDNY Commercial Dispute
July 28, 2025Cullen and Dykman LLP’s trial team secured a major victory in the U.S. District Court for the Southern District of New York on behalf of a global apparel supplier in a complex cross-border commercial litigation involving breach of contract, veil piercing, and fraudulent transfer claims.
The matter was tried before District Court Judge Dale E. Ho in November 2024. On July 21, 2025, Judge Ho issued an 87-page decision awarding judgment in favor of Cullen and Dykman’s client in the amount of $7,770,539.46 (Click Here). The trial ruling held that a U.S.-based apparel importer limited liability company and its two members are jointly and severally liable for the entire judgment, after finding the two members had used the corporate form to avoid payment obligations. Based upon the documentary evidence and trial testimony, the Court determined that the individual members diverted more than $4 million to themselves while the company owed more than $4 million to Cullen and Dykman’s client and that the members fabricated promissory notes to justify the exorbitant payments to themselves.
The dispute arose from approximately $4.2 million in unpaid invoices for apparel shipped from China to the United States between 2019 and 2021, along with an additional $1.42 million for goods ordered but never purchased by the importer. The District Court granted judgment to Cullen and Dykman’s client on the contract claims, pierced the corporate veil to hold two individual defendants personally liable for the entire debt incurred by the importer limited liability company and dismissed all of the defendants’ counterclaims.
The court also issued co-extensive money judgments on two fraudulent transfer claims including $1,862,564.32 against one of the individual defendants and $425,343.44 against both individual defendants.
Cullen and Dykman’s trial team consisted of partner Christopher E. Buckey, and associates Julie van Westendorp, Kristen Davis, and Ann K. Phillips.
About Cullen and Dykman LLP
Cullen and Dykman LLP is a full-service law firm that clients have trusted to deliver top-tier, cost-effective legal services since 1850. With over 180 attorneys in seven offices located throughout the Northeast and Mid-Atlantic regions, Cullen and Dykman is strategically positioned to meet the changing needs and demands of our clients.