During the COVID-19 pandemic, the plaintiff hospital network contracted with the corporate defendant to purchase 3 million NIOSH certified N95 masks, paying over $13 million upfront.
The corporate defendant, directed by the individual defendant Caridi, delivered KN95 masks instead, which were not NIOSH certified.
The plaintiff sued for fraudulent misrepresentation, breach of contract, oppression, and unjust enrichment.
The court found that Caridi acted recklessly in representing that the corporation could deliver NIOSH certified N95 masks without knowing if it was true.
While the court declined to pierce the corporate veil or grant an oppression remedy, it held Caridi personally liable in tort for deceit because his conduct exhibited a separate personal interest (a 50/50 profit split).
The corporate defendant was also found liable for breach of contract.
