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Sky Cable, LLC v. DIRECTV, Inc.

United States Court of Appeals for the Fourth Circuit
886 F.3d 375 (2018)


Facts

Randy Coley (defendant) engaged in a fraudulent scheme to resell cable programing of DIRECTV, Inc. (plaintiff). DIRECTV won a judgment against Coley for $2,393,000. Coley did not have significant assets personally, rendering DIRECTV unable to collect the judgment from him. However, Coley was the sole member of three limited liability companies (LLCs). Coley frequently comingled the funds of the three LLCs and often did not account for funds transferred among them. DIRECTV filed a motion asking the district court to reverse-pierce the veil of Coley’s LLCs to use their assets to satisfy the judgment. The district court granted the motion, naming the LLCs as co-judgment debtors. Coley appealed.

Rule of Law

Issue

Holding and Reasoning (Keenan, J.)

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