It is a fairly simple concept: When a person or company performs a service or delivers a product at the request of another they expect to be paid. Unfortunately, all too often, people try to receive benefits without having to pay for them.
When individuals or small business do what they promise but others don't hold up their end of the bargain it affects not only the person or the owner of the business but the families of those preforming services as well. If bills are not being paid the business suffers and its employees suffer.
After years of legal wrangling, Brian Jorde of Domina Law Group, won a $620,000 judgment for a client who had filed suit to collect what they were rightfully owed but not paid. "It is important to send a message to all who fail to live up to their promises and their contractual obligations. If work or services are preformed - pay your bill," said Jorde when leaving the Courthouse.
The case involved "piercing the corporate veil" a concept where the purported individual liability protections of INC's or LLC's are perverted in an attempt to avoid would be creditors. Veil piercing, when successful, allows a creditor to bypass the corporate or company protective wall and get to the individuals behind that entity. Jorde commented, "When basic legal formalities and governance standards are abused or ignored, as is the case with many smaller LLC's, a window opens to get beyond the façade and to the individual owners or members controlling the businesses."
Has someone breached a contract with you and think they are slick hiding behind a LLC alphabet soup? If so, give us a call.