Green v. Freeman

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Defendant Corinna and her husband founded Piedmont Southern Air Freight, a shipping company. Corinna later delegated responsibility and authority for the company to her son Jack. Jack partnered with Larry to create Piedmont Express Airways and Piedmont Capital Holding of North Carolina. Plaintiffs each gave the Piedmont companies $200,000 as a loan and as an investment. After all of Plaintiffs' $400,000 had been spent, Plaintiffs sued Jack, Larry, Corinna, and the Piedmont companies to recover the funds, alleging several claims. As for Corinna, only Plaintiffs' breach of fiduciary duty and piercing the corporate veil claims were submitted to the jury. The jury entered a verdict against Corinna on those issues. The court of appeal affirmed. The Supreme Court reversed on the breach of fiduciary duty issue, holding that Plaintiffs' evidence on their breach of fiduciary duty claim was insufficient as a matter of law, and Plaintiffs' agency claims were the only remaining claims to which personal liability may attach under the piercing the corporate veil doctrine. Remanded for consideration of Plaintiffs' cross-appeal from the trial court's dismissal of their agency claims against Corinna and the effect of the agency claims on the application of the piercing the corporate veil doctrine. View "Green v. Freeman" on Justia Law