Missouri Jury Instruction - 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation

• Category: Federal - Jury Instructions
• State: Multi-State
• Control #: US-11CF-1-9-5-2
• Format: Word; Rich Text

Description

This form contains sample jury instructions, to be used across the United States. These questions are to be used only as a model, and should be altered to more perfectly fit your own cause of action needs.

Missouri Jury Instruction — 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation is an important legal concept used in cases involving corporate liability and the piercing of the corporate veil. This jury instruction is applicable when a subsidiary corporation is alleged to be acting as the alter ego of its parent corporation, essentially disregarding the separate legal existence of the subsidiary. The purpose of this jury instruction is to determine whether the corporate veil should be pierced, meaning the subsidiary can be held liable for the parent corporation's obligations or actions. In such cases, the court looks beyond the normal principles of limited liability and treats the subsidiary as if it were the same entity as its parent. To establish a subsidiary as an alter ego of its parent corporation, the plaintiff must show certain factors, which could be mentioned while giving the jury instruction. These factors include: 1. Control: The plaintiff must demonstrate that the parent corporation exercises complete control over the subsidiary's business decisions, financing, and operations. This control can be evidenced by the parent corporation making all major business decisions for its subsidiary. 2. Unity of Interest: It must be shown that there is a unity of interest and ownership between the parent and subsidiary corporations. This unity can be demonstrated by commingling of assets, shared management personnel, or the parent guaranteeing the subsidiary's liabilities. 3. Fraud or Injustice: The plaintiff must prove that allowing the separate existence of the subsidiary to stand would lead to fraud or injustice. This could involve demonstrating that the parent corporation is using the subsidiary to evade its financial obligations or defraud creditors. If the jury finds that the subsidiary corporation is, indeed, acting as the alter ego of its parent corporation, it may be held liable for the parent's debts or actions. This can have significant implications for the subsidiary's financial standing and legal responsibilities. It's important to note that Missouri Jury Instruction — 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation may have certain variations or adaptations depending on the specific facts and circumstances of each case. Different types or variations of this jury instruction may focus on various elements that need to be proven or additional considerations that the jury should take into account. In conclusion, Missouri Jury Instruction — 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation is a legal instruction that helps guide the jury in determining whether a subsidiary corporation should be treated as the alter ego of its parent corporation. By considering factors like control, unity of interest, and potential fraud or injustice, the jury can establish whether the corporate veil should be pierced and hold the subsidiary liable for its parent's obligations.