In a high-stakes complex commercial litigation matter, La Rosa Law successfully pierces the corporate veil of a rival entity to compel it to arbitrate.
Piercing the corporate veil means that a court has decided that the legal protections of a corporation do not apply to the owners of the corporation and the owners can be held personally responsible for any debts and obligations. This means that if a company has done something wrong, the owners can be held responsible instead of just the company.
Piercing the corporate veil is a serious legal action and is not done lightly. It involves a court finding that a corporation or limited liability company is not operating as a separate entity from its owners or shareholders. A court must find the corporate form must have been used fraudulently or for an improper purpose and this can cause injury to the plaintiff. This can have significant implications for the owners or shareholders because it exposes them to potential liability. The corporate veil can only be pierced under very specific circumstances, so it is not done without careful consideration of all the relevant facts.
It is important for a client to win a case like this because their recovery is increased, and they get to save time and resources by arbitrating. Arbitrating rather than going to court can help clients since it typically involves less paperwork and fewer court appearances. Additionally, the client can recoup any losses related to the fraudulent activity and this can result in a significant increase in recovery for a client as they will be able to obtain damages directly from the individuals responsible. Recovering damages from those individuals may be easier and faster than pursuing a legal action against a corporation directly.