Assume that Pinnacle, LLC filed a lawsuit against Freida Sullivan and Sullies, LLC to recover unpaid rent. Pinnacle alleged that Freida Sullivan had promised to pay rent, but simultaneously formed Sullies, LLC to avoid liability for it. According to Pinnacle Sullies, LLC was 80% owned by Freida Sullivan, had no employees, and had no function but to hold Freida's assets away from its creditors. Sullies, LLC filed a motion to dismiss the action.

Instructions:

Consider the fact situation and answer the following questions:

• Under what theory could Pinnacle recover from Sullies, LLC?
• What should the court decide?