N.Y. Court Says Maryland Law Governs Veil-Piercing Theory in MTBE Exposure Suit

NEW YORK – Maryland law governs the veil-piercing theory in a MTBE exposure suit brought by the Commonwealth of Pennsylvania against Lukoil Americas Corp., a New York federal court has ruled.

In a March 30 order, the U.S. District Court for the Southern District of New York opined that “where a federal cause of action is asserted, federal common law may apply to veil-piercing, but not when the ‘source of the right sued upon’ is found in state law.”

The underlying litigation involves claims that the defendants’ use of the gasoline additive methyl tertiary butyl ether (MTBE) contaminated surrounding groundwater.