November 09, 2010
Can't pierce veil for contract claim absent fraud or improper use
Allegations of breach of contract by a subsidiary corporation aren’t enough to pierce the corporate veil in Massachusetts, absent "allegations of fraudulent or improper use of [the other entitie’s] corporate form in a manner related to the contract. That’s the holding of a recent decision by a Bay State federal court in TechTarget, Inc. v. Spark Design, LLC, et al., No. 10-Civ.-11266 (WGY), 2010 U.S. Dist. LEXIS 114645 (D. Mass. Oct. 27, 2010).
A summary of the decision from New York’s Katten Muchin Rosenman LLP is here.
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