Kansas Jury Instruction - 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation
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FAQ
Alter ego is a legal doctrine whereby the court finds that a corporation lacks a separate identity from an individual or corporate shareholder. The court applies this rule to ignore the corporate status of a group of stockholders, officers, and directors of a corporation with respect to their limited liability.
Clark Kent, whose alter ego is Superman (see Examples in Popular Culture) Bruce Wayne, whose alter ego is Batman (see Examples in Popular Culture) The vampires of the Twilight series, whose alter egos are high school students. Norman Bates of Psycho, whose alter ego is his own mother, Norma Bates.
The ?alter ego? doctrine refers to a rule of law developed by the courts that allows for the obligations of a corporation to be treated as those of its shareholders. The alter ego doctrine disregards the separate legal existence of the corporation, and therefore is sometimes described as ?piercing the corporate veil.?
In Latin, alter ego literally means "second I". An alter ego can be thought of as a person's clone or second self. A professional alter ego might be a trusted aide who knows exactly what the boss wants done. A personal alter ego might be a close friend who is almost like a twin.
Alter ego allegations will typically include a combination of the following charges: The corporate agent was the sole owner of the corporation (including limited liability corporations); the corporate agent dominated and controlled the corporation; the corporate agent co-mingled personal funds with the corporation; the ...
Defendants claim that alter ego liability is a question of law that the Court must determine. Plaintiffs claim just the opposite; that alter ego liability is a matter of fact, to be resolved by the trier of fact: the jury.
Piercing the corporate veil involves the plaintiff asking a court to disregard the subsidiary's existence. However, in some cases, plaintiffs ask the court to disregard the parent's existence. This is called ?reverse piercing the corporate veil?.
In a situation where a defendant has used deadly force to defend another person, the Alter Ego Rule requires that the defendant stand in the shoes of the person who was being defended to determine if using deadly force for defense was appropriate.