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McCallum Family L.L.C. v. Winger

221 P.3d 69 (2009)

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McCallum Family L.L.C. v. Winger

Colorado Court of Appeals
221 P.3d 69 (2009)

  • Written by Tammy Boggs, JD

Facts

Marc Winger (defendant) was responsible for managing the entire business of Manitoba Investment Advisors, Inc. (Manitoba) but was not titled as an officer or director. Marc was married to Vicki Winger and was the son of Karen Winger; Vicki and Karen were the two sole shareholders, officers, and directors of Manitoba. Marc commingled his and Manitoba’s funds, used corporate funds to pay over $95,000 of his personal bills, took distributions from Manitoba, and was not supervised by Vicki or Karen in his management of the company. At one point, Marc negotiated for Manitoba to enter a commercial lease of real property from McCallum Family, L.L.C. (McCallum) (plaintiff). Manitoba failed to pay property taxes as required under the lease from 2003 through 2005 and vacated the property seven months early. McCallum obtained a judgment against Manitoba for over $76,000. Marc caused the removal of all of Manitoba’s available funds, and the entity dissolved in 2006. McCallum sued Marc and produced evidence to support its claim to pierce Manitoba’s corporate veil so that personal liability could be imposed on Marc. Applying a clear-and-convincing standard of proof, the trial court declined to pierce the corporate veil to reach Marc, who was not a shareholder, officer, or director of Manitoba. McCallum appealed.

Rule of Law

Issue

Holding and Reasoning (Terry, J.)

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