What are some of the factors that cause the courts to pierce the corporate veil
You will review the actual case of Dog House Investments, LLC v. Teal Properties, Inc., et al. S.E.3d., 2014 WL 539530 (Tenn. App. 2014). You can review the case by clicking the following link: https://law.justia.com/cases/tennessee/court-of-appeals/2014/m2013-00597-coa-r3-cv.html
Sometimes the owners of a corporation use the corporate entity to perpetrate fraud, circumvent the law, or in some other way accomplish an illegitimate objective. In these situations, the court will ignore the formation and structure of the corporation and hold the shareholders personally liable for a corporate obligation. This is called piercing the corporate veil. After reading the case, you will respond with answers to the following questions using your critical thinking and moral reasoning skills:
What are some of the factors that cause the courts to pierce the corporate veil?
What was the contract between Dog House Investments, Inc. and Teal Properties, Inc.? How was it breached?
When Dog House Investments, Inc. was not reimbursed it caused severe financial duress. Does this consequence make the landlord’s conduct unethical? Explain.
What is the standard for an award of punitive damages for a contract breach?
Was the standard met in this case?
How might this suit have been avoided altogether?
Was Jerry Teal’s disregard for the corporate form unethical? Why or why not?
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