Radaszewski v. Telecom Corp.
Eighth Circuit Court of Appeals
981 F.2d 305 (1992)
Radaszewski (plaintiff) was injured by a truck driven by an employee of Contrux, a wholly owned subsidiary that its parent Telecom (defendant) had funded through loans rather than equity, without fully paying for issued stock, but had also provided with $11 million in liability insurance; Contrux's excess insurer became insolvent after the accident, and Radaszewski sought to pierce the corporate veil to reach Telecom, arguing Contrux was undercapitalized. The district court rejected Telecom's argument that insurance could substitute for capitalization but still found it lacked jurisdiction over Telecom on other grounds.
Whether a plaintiff may pierce the corporate veil to hold a parent corporation liable for a subsidiary's conduct where the subsidiary was undercapitalized in a traditional accounting sense but was provided with more than adequate liability insurance.