Texas Court Reinforces LLC Veil In Ruling For Builders

Law360, New York (March 16, 2012, 5:58 PM EDT) -- A Texas limited liability company's corporate veil can be pierced only if the LLC was used to perpetrate actual fraud, a Texas appeals court ruled 2-1 Friday in a dispute between homeowners and the developers who built their house.

The decision overturned part of a ruling imposing breach-of-contract liability not only on real-estate development firm S&J Endeavors LLC but also on its members Stanley Shook and Patrick Jaehne. The appeals court majority ruling said principles of equity allowing veil-piercing in LLCs should be guided by Texas...
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