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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118201
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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can the unfair competition law be used to negate the personal

Resolved Question:

can the unfair competition law be used to negate the personal asset protection afforded by an LLC - have the courts decided that unfair competition is tortious conduct for the purpose of making a defendant's personal assets liable to seizure
Submitted: 7 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 7 years ago.
No, unfair competition is not tortious conduct such that will justify piercing the corporate veil of the LLC. The only way you can get to the personal assets is if you prove he commingled funds of the LLC with his personal assets (or one of the many other factors the courts consider when piercing the corporate veil) and this piercing of the corporate veil is something that is rarely done by the court.


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Customer: replied 7 years ago.
Thanks. The LLC probably has no attachable assets, since he has not filed an answer and the judgment amount would be $2 million. One of the other causes of action is racketeering but at this point only the LLC appears on the pleading. So I suppose we could file an amended complaint naming the LLC as the enterprise through which the racketeering was conducted and himself and his other partner in the LLC, his wife, as the perpetrators and then attempting to seize their assets. What do you think?
Expert:  Law Educator, Esq. replied 7 years ago.
You would have to make a showing to pierce the corporate veil to show the LLC is merely his "alter ego." See: Piercing the Corporate veil

You will need to do your homework and search your local case law regarding cases where the courts have pierced the corporate veil and you would have to apply those cases to your arguments as to why you should be allowed to attach his personal assets.
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