News & Analysis as of

Limited Liability Company (LLC) Shareholders Piercing the Corporate Veil

Butler Snow LLP

Veil Piercing, Revisited

Butler Snow LLP on

In 2020, when we last blogged on corporate veil piercing in Tennessee, we matter-of-factly said, “[t]he law in Tennessee on ‘piercing the corporate veil’ has not substantially changed” since previous blogs. Well, that’s no...more

Allen Matkins

Alter Ego, LLCs And Choice Of Law

Allen Matkins on

In deciding whether to impose alter ego liability with respect to a limited liability company, a federal court has several possible choices.  It could apply the law of the state of formation of the LLC, it could apply the...more

Allen Matkins

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

Allen Matkins on

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

Freiberger Haber LLP

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

Freiberger Haber LLP on

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

Allen Matkins

Outside Reverse Veil Piercing And LLCs

Allen Matkins on

"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

Husch Blackwell LLP

Delaware Court of Chancery Reaffirms LLC Member Protections

Husch Blackwell LLP on

Delaware has long been a preferred jurisdiction for business formation, partly because of its well-developed body of case law with respect to commercial disputes (which makes predicting the outcome of – and thus resolving –...more

Fox Rothschild LLP

The Court of Chancery Rejects Claim for Veil-Piercing

Fox Rothschild LLP on

In an granting a motion to dismiss a counterclaim for veil-piercing, Chancellor McCormick recently reminded litigators that “veil piercing is a tough thing to plead and a tougher thing to get.” ...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

Houston Harbaugh, P.C.

Pennsylvania Supreme Court Broadens the Scope of the “Piercing the Corporate Veil” Doctrine

Houston Harbaugh, P.C. on

Earlier this year, Houston Harbaugh wrote on the then-pending Pennsylvania Supreme Court case of Mortimer v. McCool, which presented the question of whether the Court would adopt the “enterprise” or “single entity” theory of...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

Dorsey & Whitney LLP

Reverse Veil Piercing

Dorsey & Whitney LLP on

Under Delaware law, the doctrine of “piercing the corporate veil” has traditionally been used only in circumstances where there has been serious misconduct, and in such cases the Delaware courts have only applied this...more

Morris James LLP

For the First Time, the Court of Chancery Recognizes the Viability of Reverse Veil-Piercing in Rare Circumstances

Morris James LLP on

In a case of first impression, Vice Chancellor Joseph R. Slights III in Manichaean Capital, LLC v. Excela Technologies, Inc., C.A. No. 2020-0601-JRS (Del. Ch. May 25, 2021) refused to dismiss a claim to use reverse...more

Law School Toolbox

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

Law School Toolbox on

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

Butler Snow LLP

Veil Piercing Redux

Butler Snow LLP on

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

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

Allen Matkins

Inside And Outside Reverse Veil Piercing

Allen Matkins on

UCLA Professor Stephen Bainbridge has published several posts commenting on my post discussing Curci Invs. v. Baldwin, 2017 Cal. App. LEXIS 698. The issue in Curci was whether reverse veil piercing of a limited liability...more

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