Business Associations Keyed to Hamilton
Kaycee Land and Livestock v. Flahive
Facts
Flahive Oil & Gas (Flahive) was a Wyoming limited liability company (LLC) with no assets when the suit took place. Kaycee Land and Livestock (Plaintiff) entered into a contract with Flahive allowing the company to use the surface of Plaintiff’s real property. Roger Flahive (Defendant) was the managing member of Flahive Oil & Gas at all relevant times. Plaintiff brought suit against Defendant in the district court claiming that Defendant caused environmental contamination to its real property. Plaintiff sought to pierce the LLC veil, disregard the LLC entity of Flahive Oil & Gas LLC, and hold Defendant individually liable for the contamination. There was no allegation of fraud. The district court certified to the Wyoming Supreme Court the question whether, in the absence of fraud, the entity veil of a limited liability company can be pierced in the same way as that of a corporation.
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