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PIERCING THE CORPORATE VEIL-CORPORATE LAW

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PIERCING THE CORPORATE VEIL-CORPORATE LAW- Swink v. Springman and Epic Construction Specialties, Pa. Civil No. CV-22-00086 (C.P. Lycoming August 11, 2022) (Linhardt, J.)  This is a claim under Pennsylvania Unfair Trade Practices and Consumer Protection Law.  Plaintiffs say that Mark Springman used a corporate forum to perpetrate fraud, allowing for the disregarding of the corporate forum.  The court ruled on preliminary objections that enough was sufficiently pled under Mortimer v. McCool, 255 A.3d 261 (Pa. 2021).  What plaintiff had alleged, without much in the way of facts, is the intermingling of corporate affairs with personal affairs.  There was also an allegation that Mark Springman and Epic Construction did not adhere to corporate formalities.  Again, there were general allegations of perpetration of a fraud.  The, court found that sufficient.  Plaintiff noted that they pled multiple specific facts, which the court really did not discuss in any great detail.  Again, there are a lot of allegations of dishonesty, using payment for personal benefit and failing to ensure that enough capital remained in Epic to allow it to conduct business.

The post PIERCING THE CORPORATE VEIL-CORPORATE LAW appeared first on Rieders, Travis, Humphrey, Waters & Dohrmann.


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