C.F. Trust, Inc. v. First Flight Limited Partnership

C.F. Trust, Inc. (plaintiff) and Atlantic Funding Corporation (plaintiff) each held judgments against Barrie Peterson, who owned a 98-percent interest in First Flight Limited Partnership (defendant). After obtaining charging orders against Peterson's partnership interest, the creditors sued to reverse-pierce First Flight's veil and reach its assets directly, because Peterson had been routing First Flight's funds through a company he wholly owned to pay over $2 million of his own personal expenses, and, after the judgments and charging orders issued, transferred half his partnership interest to his son and directed the son to funnel First Flight distributions back to Peterson's wife or his personal-expense company. The trial court allowed reverse veil piercing, and First Flight appealed.