The law in Tennessee on "piercing the corporate veil"
has not substantially changed since our
last blog on the subject.
The Tennessee Court of Appeals has recently, and cogently,
restated and reconfirmed the state law requirements for
"piercing the corporate veil," and, importantly in this
age of use of limited liability companies to conduct business but
avoid personal liability for the owners, "piercing the LLC
veil." In Underwood v. Miller d/b/a Nashville Design
Center, LLC, No. M2019-00269-COA-R3-CV, 2020 WL 730881,
decided February 13, 2020, the Court reaffirmed the requirements
for imposing liability on the corporation's shareholders or on
LLC's members.
The Court applied the so-called Allen factors:
