Legal Question in Civil Litigation in Georgia

Piercing The Corporate Veil

I have a judgment that was awarded to me in magistrate court. It is against a corporation, which is no longer in business. I want to bring a suit against its owner or primary officer, whom I believe used the corporation to perpetuate a fraud. What is the best procedure to accomplish this goal?


Asked on 2/27/06, 12:51 am

2 Answers from Attorneys

Jeff Kent Kent & Merritt, P.A.

Re: Piercing The Corporate Veil

There is no single, simple answer to your questions. There are a variety of ways to pierce a corporate veil: showing the owner(s) used the corporation as their "alter ego" by failing to respect the legal distinction between personal and corporate finances, activities, etc.; showing that the corporation and another business entity were not really separate through comingling accounts, jobs, employees, etc.; showing a deliberate undercapitalization at the inception of the business; showing that the corporate action was not really the action of the corporation but of the individual owner(s) in their individual capacities; and a number of other fact-specific ways.

Check this site, FindLaw, and Nolo to see if you can find some help as to the particular facts of your case. Because there are few black and white laws and rules regarding this issue, you may need to discuss this situation with an attorney if you cannot find what you are looking for by yourself.

The foregoing is general informaiton only, not specific legal advice. No attorney/client relationship has been created or should be implied.

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Answered on 2/27/06, 6:25 am
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Piercing The Corporate Veil

To add to Mr. Kent's post, how is this new claim related to the original lawsuit? If you had a fraud claim, it likely should have been something to raise against the individual in the lawsuit. What was the cause of action in the original lawsuit? How were you damaged by the alleged fraud, seperate and apart from the actions that led to your first judgment? What was the alleged fraud? The short answer to your question is 1) file another lawsuit or 2) see a lawyer who will review the many questions to see if you have a case.

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Answered on 2/27/06, 8:55 am


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