Iowa Law Protects LLC’s Owners From Personal Liability

Iowa Limited Liability Company - Pierce the Corporate Veil

A February 27, 2013 Iowa Court of Appeals opinion serves as yet another real-world example of how and why taking the time to set up a formal entity – in this case an Iowa LLC – can benefit and provide protection to the LLC’s owners (whether members or managers).  In the February 2013 opinion, the Iowa appellate court upheld a district court’s order that refused to allow a third-party (the plaintiff) to pierce the veil of an LLC in an effort to hold the LLC’s 2 members (50/ 50 owners) personally liable on several claims, including breach of contract and unjust enrichment claims.  Citing to Cemen Tech, Inc. v. Three D Indus., L.L.C., 753 N.W.2d 1, 6 (Iowa 2008), the Iowa Court of Appeals found summary judgment in favor of the LLC’s owners was proper.  Specifically, the appellate court found that despite allegations that the LLC’s tax returns show improper distributions and despite the LLC selling its assets after an administrative dissolution, the LLC’s owners were entitled to limited liability and the protections afforded under the Iowa Limited Liability Company Act.

For more information and to learn how you can seek protection as a business owner, consider contacting a licensed attorney in your jurisdiction.

Legal Disclaimer and Terms of Use

Matthew McKinney, as owner and host of this site, cannot and does not warrant the accuracy or reliability of the information presented on or through this site.  The information on this website does not constitute legal advice and readers should not rely on it to solve problems;   Further, you should seek licensed counsel before taking any action.  Any information provided on this site is presented “As Is” for your personal curiosity and enjoyment.  It is not meant to be relied upon for legal advice, counsel, or for any other purposes.  Such information does not take the place of a lawyer.  Rules and laws differ by jurisdiction and the information contained within this website may not apply in your jurisdiction.  The appearance of articles, listings, or ads, by or for professionals, on this site, does not constitute an endorsement.  In all cases, you are responsible for determining the quality of services, information, and/or advice provided by professionals through, or as a consequence of, your use of this site.  Neither Liability nor responsibility shall arise to any person or entity with respect to loss or damage caused (or alleged to be caused), directly or indirectly, by information posted on this website, or by reason of contact with a professional listed on, or posting information to, this site.  No attorney-client relationship is formed by viewing this website and practice is limited to jurisdiction where lawyers are admitted.  The information furnished on the website is only general and not a substitute for personalized legal advice.   Legal advice cannot be given without full consideration of all relevant information relating to the individual(s) situation.  Laws can change daily and new laws may, and likely will, affect the accuracy of the information herein.  The information herein may be outdated and replaced by new law.

If you are seeking representation, please read the following notice before sending an e-mail:

Sending an e-mail will not make you a client.  Until an agreement regarding representation is reached with you, anything you send will not be confidential or privileged.  Before representation can occur, a lawyer will first take you through the conflict of interest procedure and see that you are put in touch with the lawyer best suited to handle your matter.

If you proceed with an e-mail, you confirm that you have read and understood this notice.

About these ads

About Matthew McKinney

Attorney focused on civil and commercial litigation.
This entry was posted in Business Owner, Litigation, Manager, Member, New Law and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s