Written By Larry Beebe
Bond Beebe
P: 301.272.6025 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

A U.S. District Court in Northern Indiana rejected claims by Carpenter’s Employee Benefit Funds to hold the President of a bankrupt company liable for unpaid contributions.

The court explained that the Funds were required to show that “the corporate form was so ignored, controlled or manipulated that…the misuse of the corporate form would constitute fraud or promote injustice.”
In considering whether to impose individual liability, the BNA Pension and Benefits Reporter in its June 22, 2010 issue stated that “courts consider factors including undercapitalization, lack of corporate records, shareholders’ fraudulent representations, use of the corporation to promote illegal activities of fraud, the payment of individual debts, commingling of assets and the failure to observe corporate formalities.

The court concluded that there was no evidence in this case that the employer should have been personally responsible.

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