Whether the limited-liability protection afforded to members of LLCs Study also examines which of the factors courts consider in determining Rulings, and exploring how and why courts pierce the veil of LLCs. This study provides an overview of LLCs and veil-piercing byĬomparing LLCs and traditional corporations, identifying trends in This legalĭeficiency is particularly accentuated in the case of limited liabilityĬompany (LLC) organizations, where guiding doctrine is relatively With little guidance from legal doctrine (Oh, 2010). Therefore, the decision to pierce the corporate veil is generallyĭetermined by the judge based on the applicable facts and circumstances, Great risk to all shareholders in a corporation, but there are very fewĬoncrete laws that clearly describe how and when the veil should be Personal assets, thereby invalidating the limited liability of theĬorporation (Piercing the corporate veil, n.d.). Is a legal doctrine that forces shareholders to pay losses from their Inconsistencies in rulings and interpretation of the law. Piercing the corporate veil remains a common attempt, plagued with Words, the average ratio between the two is beginning to show a smallerĪs the gap between punitive and compensatory damages decreases, Punitive and compensatory damages is becoming less variable. Of punitive damages awards is on the decline, and the difference between Was $40 million-a 60 percent drop from 2002 (Hechler, 2004). jury verdicts, the median award for punitive damages Size of punitive damages awards is also decreasing. However, the ratio dropped to 1.6:1 in 2003, the year that Campbell wasĭecided, and further decreased to 0.7:1 in 2004 (Hechler, 2005). In 2002, the ratio rose dramatically to 4.4:1. National Law Journal, the median ratio of punitive to compensatoryĭamages was 3:1 in 2001. Ultimately in the allocation of expenses to consumers. Issues are cause for concern, given that costly judicial awards result Now standard buzzwords in political campaigns and the media. In the United States, tort reform and punitive damages awards are APA style: PIERCING THE VEIL: TRADITIONAL CORPORATIONS VERSUS LIMITED LIABILITY COMPANIES.PIERCING THE VEIL: TRADITIONAL CORPORATIONS VERSUS LIMITED LIABILITY COMPANIES." Retrieved from 2018 International Academy of Business and Public Administration Disciplines 03 Mar.
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