Shareholder Chris Hawkins wrote an article titled “Creditor’s Veil-piercing Claim Not Barred by Prior Receivership. Aaron Carlson Corporation v. Cohen” published in the Commercial Finance Newsletter by Westlaw (2019 WL 4282064 ). The Commercial Finance Newsletter is written by an ad hoc group of the California Lawyers Association (CLA) Business Law Section. Editorial contributions were made by the Hon. Meredith Jury (United States Bankruptcy Judge, C.D. Cal., Ret.) who is also a member of the ad hoc group.
In the article, Mr. Hawkins discusses the case of Aaron Carlson Corporation v. Cohen, 933 N.W.2d 63 (2019) and the ruling made by the Minnesota Supreme Court regarding a creditor’s veil-piercing claim against a corporation’s insiders. He explains that the creditor’s claim was not barred by the corporation’s prior receivership, because under Minnesota law, the veil-piercing claim could not have been brought by the receiver.
“The insiders argued that the creditor’s new veil-piercing lawsuit was an impermissible attack on the receivership action and that the new lawsuit was barred by res judicata. The insiders prevailed on summary judgment, and again on appeal, with the appellate court finding that the lower court was correct in concluding that the receiver had the power to assert the creditor’s veil-piercing claim (but did not do so). The Minnesota Supreme Court disagreed and reversed,” writes Mr. Hawkins.
To read the entire article, please click here.
Shareholder Chris Hawkins is the former managing partner of Sullivan Hill and a member of the Business Law Section of the CLA. Mr. Hawkins practices in the Insolvency and Commercial Bankruptcy, Business Transactions, and Commercial and Business Litigation practice groups. Within these practice areas, he represents a variety of corporate debtors, bankruptcy trustees, receivers, banks, trade creditors, asset purchasers and other parties in interest in all aspects of commercial insolvency, including bankruptcies, receiverships, and assignments for the benefit of creditors. He also represents clients with non-insolvency financial matters in both the transaction and litigation contexts.
About Sullivan Hill:
Sullivan Hill has provided efficient, aggressive, and responsive legal representation for more than 50 years. The firm provides full service representation to clients in a variety of industries with an emphasis in insolvency, construction disputes, insurance coverage, real estate, business disputes, civil litigation, and transactional work. The firm has offices in San Diego and Las Vegas.