Legal Question in Business Law in California

I am preparing a lawsuit against a corporation for non-payment of approved invoices. I want to sue them personally as well and it is my understanding that if they involved me in a bank fraud for which I was unaware I can pierce the corporate shield. I wanted to know where I can read about this ability and refer to it in my pleading.


Asked on 12/11/23, 2:59 pm

1 Answer from Attorneys

Edward Hoffman Law Offices of Edward A. Hoffman

The rules which govern piercing the corporate veil are complex. Even lawyers who are unfamiliar with these rules often find them hard to understand. There are many places where you can learn the basics, but none of them would not teach you everything you need to know in order to correctly apply those rules to your case.

There is one basic point which may be particularly useful to you: Whether the corporation's owners can be held liable for its actions depends upon their relationship with the company and not upon the company's relationship with you. The company's conduct toward you, by itself, cannot make its owners liable. There may be grounds on which to pierce the corporate veil, but the limited facts you have provided say nothing about whether any of those grounds apply here.

Also, it is not clear what you mean by "they involved me in a bank fraud." Being "involved" in a transaction in which someone else commits fraud does not make you responsible for it, though it could make you appear responsible depending upon what happened.

Please feel free to contact me directly if you would like to discuss your situation in more detail.

Good luck.

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Answered on 12/11/23, 3:21 pm


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