Biz Row Veil-Piercing Ignored Pa. Law, 3rd Circ. Says

Law360 (July 5, 2018, 9:00 PM EDT) -- The Third Circuit on Thursday ruled that a district court erred in holding only one half of a Pennsylvania tech firm’s husband-and-wife owner duo personally liable for discovery misconduct in a business dispute, issuing a precedential decision that clarified state law limits to federal sanctioning authority.

A three-judge panel vacated a Pennsylvania federal court’s ruling that Devon IT Inc. owner John Bennett, but not his wife and fellow shareholder, Nancy DiRocco, was personally on the hook for $781,000 in sanctions stemming from Taiwanese computer maker Clientron Corp.’s case against their company for nonpayment for products. In imposing sanctions, the district court...

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