Cargill, Inc. v. Hedge
Supreme Court of Minnesota
375 N.W.2d 477 (1985)
Sam and Annette Hedge (defendants) placed their farm into a family corporation, Hedge Farms, Inc., with Annette as sole shareholder and the family as its only officers, while continuing to live on and farm the land as their own home without any lease or rent arrangement with the corporation. When Sam failed to pay Cargill, Inc. (plaintiff) for farm supplies, Cargill won judgment against Sam and the corporation and became the successful bidder at an execution sale of the farm; the trial court let Annette intervene and found the Hedges could exempt 80 acres as their homestead, and the court of appeals affirmed on an equitable-interest theory, suggesting it would also support piercing the corporate veil to reach the same result. Cargill sought Minnesota Supreme Court review.
Whether a court may disregard the corporate entity and treat corporate assets as the personal assets of the shareholders or officers where doing so would further the purposes of the homestead exemption, and where the corporation is an alter ego for the shareholders or officers.