Litchfield Asset Management Corp. v. Howell
Connecticut Appellate Court
799 A.2d 298 (2002)
- Written by Rich Walter, JD
Facts
Litchfield Asset Management Corporation (Litchfield) (plaintiff) had an unsatisfied monetary judgment against a business owned by Mary Ann Howell (defendant). To avoid paying the judgment, Howell set up and transferred her personal assets to two new limited-liability companies. Howell conducted business for both companies in her garage. Members of Howell’s family owned nominal shares in the companies, but they played no role in the companies’ operations or control. The two companies commingled their assets. Howell paid company expenses using her own checking account and credit cards. On the other hand, Howell freely drew on company funds to pay her personal expenses. Litchfield sued Howell and the two companies to collect on Howell’s judgment debt. The trial court found it appropriate to disregard the limited-liability companies’ formal independence and make the companies liable for satisfying Howell’s debt. Howell and her companies appealed to the Connecticut Appellate Court.
Rule of Law
Issue
Holding and Reasoning (Lavery, C.J.)
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