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Corporations Keyed to Hazen
East Market Street Square, Inc. v. Tycorp Pizza IV, Inc.
Citation:
625 S.E.2d 191 (N.C. Ct. App. 2006)Facts
East Market Street Square is incorporated under the laws of North Carolina and owns commercial property in Greensboro consisting of a five-unit strip shopping center and two outparcels. Melvin Alston is president of East Market Street Square. Defendant Bland is the president, sole director, and sole shareholder in Tycorp Pizza IV, Inc. At the time of the trial, Tycorp Pizza owned and operated thirty-six Pizza Hut restaurants. Each of the thirty-six restaurants owned by Tycorp companies remits a percentage of its sales to another corporation, Tycorp Group, Inc., as a management fee. Defendant Bland is also the president and sole shareholder of Tycorp Group. The lease agreement was signed on 19 October 1998 by Alston as president of S & J Management Corporation and defendant as president of Tycorp IV. The lease was for a term of ten years. Both parties felt that the building on the premises needed a massive renovation. The repair work began but in 2002, due to financial difficulties, the defendant companies stopped making payments on these loans for the repair. Defendant Bland contends that he did not exercise control over Tycorp IV required to support an action to pierce the corporate veil.
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