Question

What are some of the factors that cause the courts to pierce the corporate veil?

What was the contract between Dog House Investments, Inc. and Teal Properties, Inc.? How was it breached?

When Dog House Investments, Inc. was not reimbursed it caused severe financial duress. Does this consequence make the landlord’s conduct unethical? Explain.

What is the standard for an award of punitive damages for a contract breach?

Was the standard met in this case?

How might this suit have been avoided altogether?

Was Jerry Teal’s disregard for the corporate form unethical? Why or why not?

Answer 1

Ans 1 Factor that causes court to pierce the corporate veil are following:-

1. The existence of fraud, wrong doing or injustice to the third parties.

2. Failure to maintain seperate indentities of the company and its owner or shareholder.

3. Failure to follow corporate formalities.

4. In case of insolvency due to lack of capital.

5. Absence or inaccuracy of Financial records.

6. Manipulating of assets or liabilites to concentrate those assets and liabilities.

7. Concealment ormisinterpretation of member.

8. Concealment or misrepresentation of member. etc...

Ans.2 Dog house Investment , LLC operate, a dog camp in Nashville, Tennessee. It has leased a property from

Teal properties Inc, fully owned by Jerry teal. Under the lease Jerry Teal promised that he would repair any damages that made the property untenantable.

However it got breached, because when flood occured dog house notified Jerry about it. Jerry told doghouse that the flood damaged would be covered by Insurance. Dog house spent $ 39000 on repairs and ask Teal to reimburse, which Jerry teal did not reimburse.

Punitive damages are typically assigned to a defendant as a supplemental amount of fees that gets added to their normal compensating damage that they are already required to pay to a succesful plaintiff. also the amount of punitive damage is usually set by the individual statute enacted by each state, or sometime by individual case law of a state.

In some cases, th amount of punitive damage the defandant has to pay can be very high. this is specially true incase where the defendent conduct was particularly terrible. and intentional.