In re Moore - Adversary Cadle vs, Brunswick Homes, JMH Properties, Moore Case No: 06-3417

Claims - Factual issues precluded summary judgment for limited liability company on reverse veil-piercing claim.

Material issues of fact existed as to whether a Chapter 7 debtor was the de facto shareholder of a business purportedly owned by his wife as her separate property, as to whether the business was the debtor's alter ego, such that the debtor, rather than the business, was the de facto equity interest owner of a limited liability company (LLC), and as to whether applying reverse veil- piercing as to the LLC would prejudice non-culpable shareholders or other stakeholders, such as creditors, of the LLC. These issues precluded summary judgment for the LLC on a claim under which a judgment creditor of the debtor sought to reverse-pierce the LLC's corporate veil under Texas law.

Date of decision: 11/15/07

Full opinion click here.