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CORPORATIONS - Corporate Veil: Inter-Tel, Inc. v. Linn Station Properties, LLC (COA 11/20/2009)

By Michael Stevens

Inter-Tel, Inc. v. Linn Station Properties, LLC
2008-CA-002266 11/20/09 2009 WL 3878099

Opinion by Senior Judge Henry; Judges Caperton and Dixon concurred.

The Court affirmed an opinion and order of the circuit court granting a motion for summary judgment in favor of a property owner against a parent corporation of a corporation which was in turn the corporation parent of a defunct corporation against which a default judgment was obtained for the breach of a lease of an office building. The Court held that the circuit court correctly determined that the corporate veil could be pierced and that the parent and sub-parent corporations were liable for the default judgment. There were no disputed issues of material fact that the breaching corporation was undercapitalized; that its owners did not observe corporate formalities; that it had no employees, bank accounts or assets; that it did not pay its own bills; and that it was essentially maintained for the tax advantages it provided to its parent corporations.

Full post as published by Kentucky Cases on January 15, 2010 (boomark / email).