Ordinarily, shareholders are not personally responsible for corporate liabilities. However, if a corporation has been operated as the “alter ego” of its shareholders, the corporation’s creditors—including tort claimants—may be permitted to “pierce the corporate veil“ and enforce their claims directly against the shareholders. Similarly, an action may lie on an “alter ego” theory against the corporate parent of a wrongdoing subsidiary. [Mesler v. Bragg Management Co. (1985) 39 C3d 290, 300, 216 CR 443, 448; see Laird v. Capital Cities/ABC, Inc. (1998) 68 CA4th 727, 737, 742, 80 CR2d 454, 460, 4630 [2:2015]. In assessing punitive damages against a subsidiary or other member of an affiliated group of corporations, it is wrong to take into account the wealth of the parent or the rest of the affiliated group. Absent proof of an alter ego theory of liability (¶ 2:2015 ff.), the punitive damages award must exclusively reflect the financial condition of the defendant corporate entity. [Tomaselli v. Transamerica Ins. Co. (1994) 25 CA4th 1269, 1282–1286, 31 CR2d 433, 441–443]. It would be best to seek personal assistance from a lawyer in filing your personal injury claim.


Would you like to discuss your legal matter?

PHONE

image description
RECEPTION 866-205-4971

Our receptionist will assist in scheduling new and existing clients for all offices. For initial consultations we will ask you a few questions and then find the best time for you to talk to one of the lawyers that best fits your legal matter.

Call us or use the email form and we will follow up with you right away.

EMAIL

The Law Offices of Hogan Injury will provide you with personalized attention and guidance. Protecting your rights is our main objective. We have been representing clients for the past 30 years and our experienced team of attorneys will advise you of the legal consequences of every decision you take.