Would you rather be hated or laughed at? A NY corporation chose the latter.
J.M.R. Corp. owed NY State Insurance Fund a sum for work comp premiums. To make a suit and collection difficult, it thought, all that needed to be done was to dissolve the old corporation and form a new one – to be called J.M.R. of Long Island Corp.
The officers were the same, the titles were the same, the salaries were the same. Need we even mention that the address and even the very office furniture were the same?
This article is short. The final opinion of the court was even shorter.
“To paraphrase famous legal dicta, this Court cannot define b.s. but it knows it when it smells it.” “ Commisioners of State Insurance Fund v Ramos”, NY Slip Op 31674(U), 6/6/12.
Cost containment of comp premiums can be easy – but not THAT easy.
There are better ways to be remembered.
Author: Attorney Theodore Ronca is a practicing lawyer from Aquebogue, NY. He is a frequent writer and speaker, and has represented employers in the areas of workers’ compensation, Social Security disability, employee disability plans and subrogation for over 30 years. Attorney Ronca can be reached at 631-722-2100.
Editor Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their worker’s compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com. Contact: email@example.com.
WORKERS COMP MANAGEMENT MANUAL: www.WCManual.com
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers’ comp issues.
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