Segal v. Forastero, Inc.
After obtaining a $500,000 judgment against a single-member LLC that breached a residential purchase contract, the creditor impleaded the sole member in proceedings supplementary under section 56.29 and won summary judgment piercing the veil. The Third District reversed, holding the summary judgment record failed to establish, as a matter of law, any of the three veil-piercing elements — mere instrumentality, improper purpose, and causation — where the LLC had previously owned and operated a rental property and the member simply made a business decision to default.
Key facts
- Creditor obtained a $500,000 judgment against a single-member LLC for breach of a residential purchase contract and then impleaded the sole member in supplementary proceedings under section 56.29.
- The trial court granted summary judgment piercing the LLC's veil and holding the member personally liable, finding the member dominated the entity as a mere instrumentality used for an improper purpose.
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Why it matters
The opinion supplies a quotable defense-side rule that veil-piercing cannot substitute for the personal guaranty a contracting creditor failed to obtain, and reaffirms that undercapitalization alone is not 'improper… — full analysis with a trial
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