Question
Case: Dr. Steven A. Pottschmidt, was employed by Dr. Thomas J Klosterman, who was doing business as a corporation named Thomas J. Klosterman, MD, Inc.
Case:
Dr. Steven A. Pottschmidt, was employed by Dr. Thomas J Klosterman, who was doing business as a corporation named Thomas J. Klosterman, MD, Inc. Once Pottschmidt's original employment agreement ended, he decided to bring a breach of contract suit against Klosterman allegine that he, Pottschmidt, had not been paid the amount that was actually owed him under the agreement. Within two months of the lawsuit, Klosterman created a new corporation, called Klosterman Family Practice Inc. Klosterman Family Practice, however, did not employ anyone other than the staff of the first corporation , Thomas J. Klosterman, MD, Inc. In addition, the second corporation had not moved from the original office, had not changed its phone number, had not purchased new equipment or new furniture, and had not taken on any new patients. For a while, the two corporations held separate accounts at one bank. Eventually, however, the first company's bank account was terminated, and income for bills sent out by the first company were placed in the account of the second company. Pottschmidt wants the court to permit him to pierce the corporate veil of both Thomas J. Klosterman, MD, Inc. and Klosterman Family Practice Inc. to hold Dr. Klosterman is directly liable for the money owed to him.
Question:
Is there enough evidence here to permit the veil piercing requested by the plaintiff?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started