Lumax Industries v. Aultman

N/A

OUTCOME: Favorable

Within one year of admission to the Pennsylvania Bar, Mr. Fonner prepared the brief, argued and won the Pennsylvania Supreme Court case of Lumax Industries v. Aultman. The case involved corporate issue ... s and "piercing the corporate veil". The plaintiff had entered into a business agreement with a corporation of which Mr. Fonner's client was the sole shareholder. Although the agreement was with the corporation, the plaintiff attempted to hold our client personally liable for debts of the corporation. The lower courts held that the plaintiff could hold our client liable for the debts of corporation. The Pennsylvania Supreme Court reversed the decision, holding that our client was entitled to immunity from liability since the agreement was with the corporation, and the client was merely a shareholder of the corporation. Mr. Fonner convinced the Pennsylvania Supreme Court to reverse the lower courts' decisions involving shareholder liability of a corporation's debts.