Segal McCambridge Secures Summary Judgment in Construction Case Involving Corporate Identity Theft

Segal McCambridge Shareholders Justin Waytowich and Carla Varriale-Barker secured summary judgment dismissing all claims against their client in a New York Labor Law action after demonstrating that the company had no involvement in the construction project at issue despite being named as a defendant.

The case arose from a construction accident in Queens County in which the plaintiff alleged injuries while performing scaffolding work at a jobsite. Although the client was named as a defendant based on purported contracts and invoices connecting it to the project, discovery established that the company never performed work at the site, never entered into a contract for the project and never authorized anyone to act on its behalf.

Justin developed an extensive factual record through discovery and depositions demonstrating that there was no evidence the client contracted to perform, or actually performed, any work at the project. In doing so, he successfully challenged the validity of the contracts and invoices purportedly linking the client to the project and established that the individual who executed those documents lacked authority to bind the company. The Court agreed, granting summary judgment and dismissing all claims against the client.

The matter presented a unique challenge for the defense. Rather than disproving allegations arising from work performed at the project, the defense was required to prove a negative by establishing that the client had no involvement with the project while dismantling fraudulent documents that purported to show otherwise.

The decision is the latest development in a series of lawsuits involving an alleged corporate identity theft scheme targeting the client.

The ruling reinforces Segal McCambridge's experience defending businesses facing increasingly sophisticated fraud-related claims and demonstrates the firm's ability to protect companies from liability arising out of fraudulent contracting and alleged corporate identity theft.

Segal McCambridge's Construction and New York Labor Law attorneys regularly represent owners, contractors, subcontractors and insurers in complex litigation involving construction accidents, contractual risk transfer and emerging fraud issues affecting the construction industry.