Quimbee logo
DMCA.com Protection Status
From our private database of 19,800+ case briefs...

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

Supreme Court of Virginia
580 S.E.2d 806 (2003)


Facts

C.F. Trust, Inc. (plaintiff) held promissory notes totaling more than $6 million guaranteed by Barrie and Nancy Peterson (codefendants). After the Petersons defaulted, the circuit court entered judgment in C.F. Trust’s favor. Thereafter, C.F. Trust obtained a charging order against the Petersons’ interests in First Flight Limited Partnership (codefendant), in which Barrie held a 98-percent interest. Atlantic Funding Corporation (plaintiff) held one promissory note for $1 million guaranteed by Barrie, which Atlantic purchased with the right to enforce a preexisting judgment. A circuit court granted Atlantic a charging order against Peterson’s interest in First Flight. After the Petersons still failed to pay, C.F. Trust and Atlantic sued the Petersons and First Flight, seeking to pierce the corporate veil in reverse, and hold First Flight liable for the judgments. At trial, the evidence established that Peterson avoided paying the judgments in various ways. Peterson transferred funds from First Flight to Birchwood Holdings Group, Inc. (BHG), which Barrie wholly owned, and directed BHG to pay more than $2 million of Peterson’s personal expenses. Shortly after C.F. Trust and Atlantic obtained the judgment and charging orders, Peterson transferred half of his interest in First Flight to his son, Scott. Peterson then directed Scott to distribute First Flight’s funds to himself and then distribute those funds to Nancy or BHG to pay Peterson’s personal expenses. The district court found in C.F. Trust’s and Atlantic’s favor, concluding that it was appropriate to pierce the corporate veil in reverse. First Flight appealed.

Rule of Law

Issue

Holding and Reasoning (Hassell, C.J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 506,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 506,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 19,800 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers


Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial