GreenHunter Energy, Inc. v. Western Ecosystems Technology, Inc.
Wyoming Supreme Court
337 P.3d 454 (2014)
GreenHunter Energy (defendant) was the sole shareholder of GreenHunter Wind Energy, LLC, which hired Western Ecosystems Technology (plaintiff) for consulting services but never paid, leaving Western with an unsatisfied $43,646.10 judgment against the assetless LLC; Western then sued GreenHunter directly, presenting evidence that the LLC routinely held insufficient operating funds, that GreenHunter controlled the timing and amount of money transferred to the LLC and which creditors got paid (excluding Western), and that GreenHunter's own employees performed all the LLC's work since the LLC had none of its own. GreenHunter argued it remained legally separate from the LLC with entirely separate accounts, but the district court pierced the LLC's veil and entered judgment against GreenHunter, which appealed.
Whether an LLC's corporate veil may be pierced to reach its sole member where the LLC was chronically undercapitalized and its business and finances were substantially intermingled with the member, even absent a finding of fraud.