In 1986 Dick’s Last Resort, as tenant, signed a Lease for
Presumably the Landlord did not recognize the Tenant’s intentions.
In 2005 the restaurant relocated without the Landlord’s consent and rent payments ceased. The Landlord sued Dick’s West End for breach of the lease, but also alleged that Dick’s Last Resort was liable under a little-used legal theory called “piercing the corporate veil.” That theory imposes liability by ignoring the corporate structure, when the corporate form has been used as part of an unfair device to achieve an inequitable result. Typical allegations include fraud and evasion of existing legal obligations.
The 44th Judicial District Court of Dallas, in a jury trial, awarded Judgment to the Landlord against all defendants. Dick’s Last Resort, Dick’s
Testimony from a Dick’s principal indicated that Dick’s
The Judgment of the trial court was upheld in a recent appellate decision.
1. Be careful when you form a new entity for a singular purpose.
2. Be careful when you give deposition testimony, written statements or Court testimony.
3. Juries and Judges do not favor escaping liability by playing the entity shell game.