Sigh. Why is HN always like this? (don’t answer, I know)
Piercing the veil broadly refers to removing limited liability protections because the individuals behaved in such a way (criminally) that they have forfeited their protections.
The most common people held to limited liability protections are shareholders in limited liability corporations (LLCs)
A different sort of limited liability is the idea that customers/partners of a fraudulent business are not liable for that fraud, unless they committed gross negligence in allowing the fraud to continue.
To your point, there is not a snappy term for that specific phenomenon, because it is so rare, but piercing the veil 100% applies here because it refers to the “veil of limited liability”.
> Piercing the veil broadly refers to removing limited liability protections because the individuals behaved in such a way (criminally) that they have forfeited their protections.
There is no “limited liability” for criminal sanction to which the term applies. There are criminal immunities, but finding something to be within an exception to one is not called “piercing the veil” in any context.
> A different sort of limited liability is the idea that customers/partners of a fraudulent business are not liable for that fraud
“People other the person committing a wrong are not liable for the wrong” is not generally a “form of limited liability”; it is the basic rule of initial liability. An exception to that is respondeat superior in which a principle is responsible for his agents liability in a broad range of circumstances, and corporate limited liability is an exception to that, since the corporation could otherwise be seen as an agent for its shareholders.
Finding that someone committed a wrong related to a third-party wrong that makes them vicariously liable for that third-party wrong is not generally called “piercing the veil”.
And that’s all in civil liability, which is the only domain where “piercing the veil” applies at all.
> To your point, there is not a snappy term for that specific phenomenon, because it is so rare
No, again, charging co-conspirators in a criminal conspiracy, regardless of their other business relations to each other, isn’t “rare”, has nothing to do with “gross negligence”; it doesn’t have (another) snappy name because its central to the point of the crime of conspiracy.
> There is no “limited liability” for criminal sanction to which the term applies. There are criminal immunities,
Huh? My dude, she didn’t work for FTX.
If you’re saying that she in fact did (and was therefore a co-conspirator), then we agree that FTX was a sham corporation that acted on behalf of Alameda, but then why are we here?
Oh yeah, because you wanted to sound smart without fully understanding a situation; I guess I already knew that.
Piercing the veil broadly refers to removing limited liability protections because the individuals behaved in such a way (criminally) that they have forfeited their protections.
The most common people held to limited liability protections are shareholders in limited liability corporations (LLCs)
A different sort of limited liability is the idea that customers/partners of a fraudulent business are not liable for that fraud, unless they committed gross negligence in allowing the fraud to continue.
To your point, there is not a snappy term for that specific phenomenon, because it is so rare, but piercing the veil 100% applies here because it refers to the “veil of limited liability”.