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Business Organizations Keyed to Sjostrom
GreenHunter Energy, Inc. v. Western Ecosystems Technology, Inc.
Citation:
337 P.3d 454 (Wyo. 2014)Facts
In 2009, appellee Western and the LLC entered into a contract whereby Western undertook to provide the LLC consulting services related to the potential development of a wind turbine farm. While Western performed under the contract, the LLC paid nothing for Western’s services. The district court granted judgment in favor of Western. After learning that it could not collect on its judgments against the LLC, Western brought this action against appellant, the sole member of the LLC, seeking to pierce the LLC’s veil and hold appellant liable for the LLC’s contractual obligations. At trial, Western was able to prove that the LLC is a wholly-owned subsidiary of appellant, the latter being the sole member and manager of the former. The LLC consistently carried on operating capital balance which was insufficient to cover its debts. Western showed that appellant decided when and how much money to advance to the LLC to allow it to its accounts payable.
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