Buckley v. Abuzir will likely be viewed as a watershed in piercing the corporate veil litigation because of its exhaustive analysis of when a non-shareholder can be personally liable for corporate debts. In that case, the court provides an extensive survey of how nearly every jurisdiction in the country has decided the non-shareholder piercing question. …
Category Archives: Corporate
Binding LLC to Operating Agreement A Substantive Change in Illinois Law; No Retroactive Effect – IL Court
The summer of 2017 ushered in a slew of changes, to Illinois’ limited liability company statute, 805 ILCS 180/15-1 et seq. (the “Act”). Some of the key Act amendments included clarifying LLC member rights to access company records, explaining if and when a member or manager’s fiduciary duties can be eliminated or reduced, tweaking the …
Veil Piercing Claim Triable By Jury; Consumer Fraud Act Applies to Failed Gas Station Sale – IL 3rd Dist.
An Illinois appeals court recently affirmed a $700K money judgment for a gas station buyer in a fraud case against the seller. The plaintiff gas station buyer in Benzakry v. Patel, 2017 IL App(3d) 160162 sued the seller when the station closed only a few months after the sale. The plaintiff alleged he relied on …