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Corporate Veil Personal Liability

Jackson Lewis P.C.

You Can Be Personally Liable For Withdrawal Liability Despite A Company’s Limited Liability Status

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Unionized employers participating in an underfunded multiemployer pension plan face significant financial exposure when withdrawing (completely or partially) from the plan. The cost (called “withdrawal liability”) is...more

Allen Matkins

Court Holds Corporations Owed Duty To Protect Third Parties From Abuse By Sole Shareholder

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Michael Jackson died in 2009.  After his death, two plaintiffs filed complaints against two corporations of which Michael Jackson was the sole shareholder.  The trial court sustained the plaintiffs' demurrer setting up...more

Cohen Seglias Pallas Greenhall & Furman PC

PA Business Owners Beware—Mortimer v. McCool Creates New Exposure for Sister Companies in Piercing-the-Corporate-Veil Claims

Clients often worry if they can be held personally liable for a company in which they have an ownership interest. This is often followed by the question of whether one of their companies can be responsible for the obligation...more

Blake, Cassels & Graydon LLP

Personnalité morale : nouvelles orientations sur la levée du voile et le recours en cas d’abus

La Cour d’appel de l’Ontario (la « Cour ») a récemment fourni des orientations sur les recours intentés contre les administrateurs dans lesquels la levée du voile de la personnalité morale est demandée, ainsi que sur les...more

Freiberger Haber LLP

25% Owner Held Not to Have Dominated and Controlled Corporate Entity to Pierce the Corporate Veil

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By: Jeffrey M. Haber This Blog has previously written about the benefits of forming a corporation or a limited liability corporation and the perils of ignoring the corporate formalities that are attendant thereto. In today’s...more

Blake, Cassels & Graydon LLP

The Power to Pierce: New Guidance on Piercing the Corporate Veil and the Oppression Remedy

The Ontario Court of Appeal (Court) recently provided guidance on claims against directors based on relief-seeking to pierce the corporate veil and the oppression remedy. In FNF Enterprises Inc. v. Wag and Train Inc. (FNF),...more

Allen Matkins

Outside Reverse Veil Piercing And LLCs

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"Outside reverse veil piercing" allows a shareholder's creditor to reach corporate assets.  In Postal Instant Press, Inc. v. Kaswa Corp., 162 Cal. App. 4th 1510 (2008), the Fourth District Court of Appeal rejected outside...more

Robson & Robson, P.C.

The Pennsylvania Supreme Court Makes It Harder For Business Owners To Escape Legal Liability By Hiding Behind Corporate Structures

Robson & Robson, P.C. on

“Piercing the corporate veil” is one of those legal terms that makes a legal action seem more romantic than it really is. When a party to a legal dispute attempts to pierce the corporate veil of a corporate adversary, they...more

Troutman Pepper

It’s Not Just the Feds: State AGs Are Reaching Through Your Corporation

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No longer simply legal advisers for their respective governors, state attorneys general are increasingly taking an offensive position, bringing lawsuits against companies and executives they accuse of bad conduct. A team of...more

Stradling Yocca Carlson & Rauth

California Business Divorce: Reverse Veil Piercing: Permitting a Court to Hold a Company Liable for the Debt of an Individual...

You have likely heard the term “piercing the veil.” This legal doctrine permits a court to ignore corporate formalities and hold an individual owner liable for a company’s debt. But you may be less familiar with the doctrine...more

Allen Matkins

Due Process No Bar To Alter Ego Action

Allen Matkins on

In a decision published on Wednesday, the California Court of Appeal held that a defendant's due process rights do not protect the sole shareholder of a corporation from an alter ego action.  Lopez v. Escamilla, Cal. Ct....more

Venable LLP

When Can the FTC, and CFPB, State Consumer Credit Regulators Pierce the Corporate Veil?

Venable LLP on

Does Ownership and Management Structure Matter? Fiduciary Relationships - Special confidence placed in one who in equity and good conscience is bound to act in good faith and in due regard to the one reposing confidence....more

Freeman Law

Alter Ego and The Fifth Circuit Court of Appeals: Texas Business Owner Personally Liable for His Corporation’s Failure to Pay...

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In a recent case before the Fifth Circuit Court of Appeals, the court was faced with the following question: Whether a business owner could be held personally liable for his corporation’s failure to pay taxes.  Its answer?...more

Freeman Law

Piercing the Corporate Veil

Freeman Law on

A corporation is a separate legal entity. This status normally insulates its owners or shareholders from personal liability for the corporation’s obligations. But Texas law recognizes exceptions to this general rule. ...more

Allen Matkins

California Court Addresses Outside Reverse Veil Piercing Of Chimeric LLC

Allen Matkins on

Reverse veil piercing involves subjecting an entity to the liabilities of its owner. As Professor Bainbridge has noted, there are two types of reverse veil piercing...more

Conyers

Piercing the Corporate Veil, or ‘Alter Ego’ liability, in the Cayman Islands, Bermuda, and the British Virgin Islands

Conyers on

Creative attempts to ‘pierce the corporate veil’ sometimes come before the Courts of Bermuda, the British Virgin Islands, and the Cayman Islands. In some cases, an attempt is made to establish personal liability on the...more

Patton Sullivan Brodehl LLP

Alter Ego Claims — Beware Attorney Fee Liability

One of the essential purposes of forming an entity and conducting business through that entity is to limit the owners’ personal liability. California law generally views the entity and its owners as separate and legally...more

Patton Sullivan Brodehl LLP

LLC Money-Shuffling and “Alter Ego” Liability

The “alter ego” doctrine allows a creditor of a business entity to “pierce the corporate veil” and enforce the debt against the company’s individual owners.  The standards for proving alter ego liability are high, and the...more

Law School Toolbox

Law School Toolbox Podcast Episode 280: Listen and Learn -- Piercing the Corporate Veil

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Welcome back to the Law School Toolbox podcast! Today, we have another episode in our "Listen and Learn" series, where we review a substantive area of the law and apply that law to fact patterns. This time we're looking at...more

Law School Toolbox

Bar Exam Toolbox Podcast Episode 120: Listen and Learn -- Piercing the Corporate Veil

Law School Toolbox on

Welcome back to the Bar Exam Toolbox podcast! Today, we have another episode in our "Listen and Learn" series, where we review a substantive area of the law and apply that law to fact patterns. This time we're looking at...more

Rivkin Radler LLP

Blue Bell Creameries Pleads Guilty to 2015 Listeria Outbreak, Former CEO Charged

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The United States Department of Justice (DOJ) announced that it had reached an agreement with Blue Bell Creameries of Brenham, Texas, to permit the company to plead guild to two misdemeanor counts of distributing adulterated...more

Butler Snow LLP

Veil Piercing Redux

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The law in Tennessee on “piercing the corporate veil” has not substantially changed since our last blog on the subject. The Tennessee Court of Appeals has recently, and cogently, restated and reconfirmed the state law...more

Allen Matkins

A Most Curious Decision

Allen Matkins on

I find Judge Cynthia Bashant's recent ruling in Platypus Wear, Inc. v. Bad Boy Europe, Ltd., U.S. Dist. Case No. 16-cv-02751-BAS-BSM (Jan. 23, 2020), to be curious in in several respects. Judge Bashant ruling was on the...more

Patton Sullivan Brodehl LLP

“Reverse Veil Piercing” to Reach an LLC’s Assets

“Piercing the corporate veil” — also referred to as “alter ego” liability — is a familiar concept under California law. Ordinarily, a corporation or other entity (such as an LLC) is considered a legal entity separate and...more

Sullivan & Worcester

Knoedler Gallery Owners May be Liable for Forgery Scandal, Jury Will Decide

Sullivan & Worcester on

The sprawling saga of the M. Knoedler & Co. Gallery forgery scandal is approaching a full decade since the storied gallery closed abruptly in 2011 (fuller background further below). The last pending civil suit related to the...more

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