Will you please answer this question for me
17.9 Piercing the Corporate Veil
M. R. Watters was the majority shareholder
of several closely held corporations
, including Wildhorn Ranch, Inc. (Wildhorn). All these businesses
were run out of Watters’s home in Rocky Ford, Colorado. in Teller County, Colorado. Although Watters claimed that the ranch was owned by the corporation
, the deed for the property listed Watters as the owner.Watters paid little attention to corporate formalities, holding corporate meetings at his house, never taking minutes of these meetings, and paying the debts of one corporation with the assets of another. During August 1986, two guests of Wildhorn Ranch Resort drowned while operating a paddleboat at the ranch. The family of the deceased guests sued for damages. Can Watters be held personally liable?
Geringer v. Wildhorn Ranch, Inc., 706 F.Supp. 1442, 1988
U.S.Dist. Lexis 15701 (D. Colo.)
Case 17.9 -- Piercing the Corporate Veil
Can Walters be held personally liable for Wildhorn’s debts and torts? Why or why not?
Agreement Libby-Broadway Drive-In, Inc.(Libby), is a corporation licensed to operate a McDonald’s fast-food franchise restaurant by the McDonald’s System, Inc. (McDonald’s). Libby was granted a license to operate a McDonald’s in Cleveland, Ohio, and was granted an exclusive territory in which McDonald’s could not grant another franchise. The area was described as “bound on the north by the south side of Miles Avenue, on the west and south side by Turney Road, on the east by Warrensville Center Road.” In December 1976, McDonald’s granted a franchise to another franchisee to operate a McDonald’s restaurant on the west side of Turney Road. Libby sued McDonald’s, alleging a breach of the franchise agreement. Is McDonald’s liable? Libby-Broadway
Drive-In, Inc. v. McDonald’s System, Inc., 391 N.E. 2d 1, 1979
Ill.App. Lexis 2698 (Ill. App.)
Case 18.7 -- Franchise Agreements
Is McDonalds liable for breaching the franchise agreement with Libby? Why or why not?