Legal Question in Education Law in Ohio

If a business purchases another and then gives that business 1.8 million dollars and that business does well for a long while but then hits rock bottom and stops all business while leaving only 10k,and they still owe a creditor a large sum which well exceeds what funds are on hand, Can the courts pierce the corporate viel?


Asked on 5/12/10, 6:12 pm

1 Answer from Attorneys
Neil Rubin Neil S. Rubin, Attorney at Law, LLC

This is not an "Education Law" question but I will attempt to answer anyway. Can the corporate veil be pierced? Sure, but an experienced attorney will need to evaluate the circumstances to see if it is an option. Courts do not pierce veils. They rule on motions to do so. Business litigators will look at how the debtor did business to determine if the company did not practice formalities in accordance with the law. If they did not, piercing could be available and then personal assets from the company's owners would be in play. You should hire an attorney to do an investigation and see whether it would be worthwhile to file a lawsuit to collect.

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Answered on 5/26/10, 7:40 am


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