The BUSKLAW February Newsletter: Two Recent Business Court Cases Offer Valuable Lessons for Michigan Companies
Continuing my quest to post about Michigan cases that are relevant to small(er) Michigan companies, there are two recent decisions from Kent County Business Court Judge Christopher Yates that business folks should keep firmly in mind. One case is obvious, the other less so, but let's have at it. The first case involves the piercing of the corporate veil. You do know about the corporate veil, right? You can set up a corporation to insulate your personal assets from liability, but you can lose that protection if you play games to your creditors' detriment. That was the scenario in V&B Properties v Account-Ability Tax & Accounting LLC, et al . Defendant Account-Ability signed a real estate lease with Plaintiff V&B and then failed to pay $6300 in rent. After attempting to work things out, Defendant's principal (call her "Mrs. J"), decided to bag it, pay nothing to the V&B, and simply, through her husband ("Mr. L"), start a new accounting