Alara is the sole owner and director of a biosolids management business called Willow Construction, LLC. Willow has been in business for nearly 20 years. Alara used her own funds when she started the company. She set up a separate business account for Willow at USA Bank, the same bank where she has her personal banking account. Over the years, Alara routinely transferred money between her personal account and the official business account for Willow. She established a separate set of financial ledgers for Willow, but as the company grew, she often neglected to update them. Alara also owned two other businesses and in recent years got into the habit of using the accounts for Willow and her other businesses interchangeably, with no regard for which company should be providing money for which expenses. Willow agreed to provide lagoon sludge removal for Clark Corp. (who was building a wastewater treatment facility). After beginning work on the project, Willow abandoned the job. Clark obtained a $450,000 judgment for breach of contract against Willow, but was unable to collect on the judgment. Clark then filed a new action against Alara directly, seeking to recover from her personally. Is Clark likely to prevail on securing money from Alara personally?

• A.Yes, but only if Clark can prove that Willow is operating as a mere shell company serving no legitimate business purpose.
• B.No, since Alara has an LLC, she is always protected from personal liability.
• C.Yes, because Alara commingled business and personal finances and failed to follow other corporate formalities.
• D.No, because Alara followed all of the appropriate corporate formalities when setting up her business.