Monday, October 24, 2011
More from the Ky Supreme Court on Piercing the Veil
Another Piercing case before the Kentucky Supreme Court –
Schultz v. General Electric Healthcare Financial Services, Inc.
In addition to the Inter-Tel Technologies case currently before the Supreme Court, there is likewise Schultz v. General Electric Healthcare Financial Services, Inc., 2010-SC-183-DG. This case was argued on August 18. While the procedural history of the case will no doubt be at issue, GE having been granted a motion to pierce the veil on a judgment on the pleadings, the core question involves whether piercing is justified when the sole shareholder diverted corporate assets to his own benefit rather than for the disposition of the creditor’s claim. Shades of Bear Inc. v. Smith are obvious.