Tuesday, March 17, 2015

Schlossberg v. Bell Builders Remodeling, Inc. (Ct. of Appeals)

Filed:  February 20, 2015

Opinion by: Clayton Greene, Jr.

Holding:  A court may disregard the corporate formality to prevent a paramount inequity and fraud is not required.  

Analysis:  This ruling comes from a certified question sought by the Bankruptcy Court. The Court relied on Hildreth v. Tidewater Equip. Co. Inc., which sets forth that piercing the corporate veil is proper for fraud or to prevent a paramount inequity. The Court determined that preventing a paramount inequity is sufficient grounds to disregard the corporate formality.

The full opinion is available in PDF.

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