NetJets Aviation, Inc. v. LHC Communications, LLC
United States Court of Appeals for the Second Circuit
537 F.3d 168 (2d Cir. 2008)
NetJets (plaintiff) leased an airplane interest to LHC (defendant), a single-member LLC owned by Zimmerman, who had sole financial control, regularly withdrew LHC funds for personal expenses like his home, car, and family health insurance, transferred personal money into LHC without any documented terms, and used much of the leased flight time for personal family trips. After LHC stopped operating owing NetJets over $340,000, NetJets sued Zimmerman personally to pierce the LLC veil; the district court granted Zimmerman summary judgment, dismissing the personal-liability claims, and NetJets appealed.
Whether a court will pierce the limited liability company veil where there is overall injustice or unfairness and the LLC is a mere instrumentality or alter ego of its owner.