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ARTICLE · 24 JULY 2025

Veil Piercing, Revisited

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In 2020, when we last blogged on corporate veil piercing in Tennessee, we matter-of-factly said, "[t]he law in Tennessee on 'piercing the corporate veil' has not substantially changed"...

United StatesCorporate/Commercial Law
William R. O'Bryan, Jr.
William R. O'Bryan, Jr.
Corine A. Stark
Corine A. Stark
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In 2020, when we last blogged on corporate veil piercing in Tennessee, we matter-of-factly said, "[t]he law in Tennessee on 'piercing the corporate veil' has not substantially changed" since previous blogs.1 Well, that's no longer the case. In Youree v. Recovery House of East Tennessee, LLC, 705 S.W.3d 193 (2025), the Tennessee Supreme Court clarified applicable law concerning veil piercing.

There is a "broad consensus" that the doctrine of piercing the corporate veil is "among the most confusing in corporate law." Id. at 208. It is also "the most litigated issue in corporate law." Id. (citing Robert B. Thompson, Piercing the Corporate Veil: An Empirical Study, 76 Cornell L. Rev. 1036, 1036 (1991)).

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