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Business Organizations Keyed to Bauman
Dailey v. Ayers Land Development, LLC
Citation:
825 S.E.2d 351 (W. Va. 2019).Facts
Jerry Ayers, Roger Ayers, and Michael Frye created RJM Holdings and various other corporations for the purpose of creating a land development. The petitioners purchased land and built a home in the development. The purchase and construction was governed by a 2007 covenants agreement. In 2013, without petitioners knowledge, respondents amended the covenants and various homes were built in the development that did not comply with the 2007 covenants.
Petitioners sought to hold the individual respondents personally liable for the actions of their companies and showed that (1) RJM and the other respondent companies had no operating agreements with regard to the use of the same personnel, office space, equipment phone lines and marketing materials; and (2) transfers from various respondent companies were made to pay RJM’s expenses.
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