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GreenHunter Energy, Inc. v. Western Ecosystems Technology, Inc.

Wyoming Supreme Court
337 P.3d 454 (2014)


Facts

GreenHunter Energy, Inc. (GreenHunter) (defendant) was the sole shareholder of GreenHunter Wind Energy, LLC (LLC). In 2009, Western Ecosystems Technology (Inc.) (plaintiff) agreed to provide consulting services to the LLC. Western performed the services, but the LLC did not pay. Western filed a breach of contract suit against the LLC, obtaining a $43,646.10 judgment. The judgment could not be satisfied because the LLC had no assets. Western filed suit against Greenhunter, seeking to pierce the LLC’s veil to hold GreenHunter. Western contended that GreenHunter was the LLC’s alter ego, presenting evidence that the LLC was a wholly owned subsidiary of GreenHunter, and that the LLC continuously held an insufficient operating balance. Western established that GreenHunter controlled the timing and amount of money it gave the LLC to pay its debts, and that GreenHunter permitted the LLC to pay certain creditors, but did not allow payment to Western. Western presented evidence to show that GreenHunter employees performed all services for the LLC because the LLC had no employees of its own. GreenHunter contended that it was detached from the LLC and maintained entirely separate accounts. The district court found in Western’s favor, piercing the LLC’s veil and awarding judgment against GreenHunter. GreenHunter appealed.

Rule of Law

Issue

Holding and Reasoning (Davis, J.)

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