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In 2014, the appellate court of Massachusetts elected to pierce the veil of single owner limited liability company whose business function was to manage rental

In 2014, the appellate court of Massachusetts elected to pierce the veil of single owner limited liability company whose business function was to manage rental properties. In the case of Kosanovich v. 80 Worcester Street Associates, LLC, the court held because of the way in which Defendant conducted his business, piercing the corporate veil was warranted allowing Plaintiff to recover and collect against the individual owner despite the protections traditionally afforded to LLC owners.

In Kosanovich and other cases, courts have recognized certain circumstances in which the 'veil' or protection surrounding a business organization must be pierced to allow an injured party to recover against members and/or shareholders. Using the internet, locate a case in which a court allowed a creditor to pierce the corporate veil of an LLC, corporation or other entity with limited liability. Indicate the facts and circumstances upon which the court justified its decision to pierce the veil and attach liability to the business owner's individual assets. Finally, identify steps the business owner should have taken to prevent personal liability from attaching.

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