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Hoyt Properties, Inc. v. Production Resource Group, L.L.C.

736 N.W.2d 313 (2007)

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Hoyt Properties, Inc. v. Production Resource Group, L.L.C.

Minnesota Supreme Court

736 N.W.2d 313 (2007)

Facts

Production Resource Group, L.L.C. (PRG) (defendant) and its affiliated company, Entolo, appeared as defendants in an eviction action initiated by Hoyt Properties, Inc. (Hoyt) (plaintiff). Hoyt reached a settlement with Entolo but agreed to release PRG as a defendant after inquiring with PRG’s attorney about legal grounds for piercing the corporate veil between Entolo and its parent company. According to Hoyt, PRG’s attorney replied, “There isn’t anything. PRG and Entolo are totally separate.” Hoyt later discovered that a complaint in a different lawsuit involving the two companies alleged facts that would support piercing the corporate veil. Hoyt filed suit against PRG on claims of fraudulent misrepresentation. PRG succeeded on a motion for summary judgment in the trial court. Hoyt appealed, and the appellate court ruled in Hoyt’s favor. PRG petitioned the state supreme court for review.

Rule of Law

Issue

Holding and Reasoning (Page, J.)

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