Washington 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.

Washington Jury Instruction — 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation In legal proceedings involving corporate entities, Washington Jury Instruction — 1.9.5.2 addresses the concept of a subsidiary corporation being treated as the alter ego of its parent corporation. This instruction examines the circumstances in which a subsidiary entity may be disregarded, and its actions or liabilities may be attributed to the parent corporation. Keywords: Washington, jury instruction, subsidiary, alter ego, parent corporation, legal proceedings, liabilities Description: Washington Jury Instruction — 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation is a crucial legal principle that helps determine when a subsidiary corporation should be considered indistinguishable from its parent corporation. This instruction is intended to guide jurors in understanding the complex relationship between these two corporate entities. A subsidiary is typically a company that is wholly or partially owned and controlled by another corporation, known as the parent corporation. While subsidiaries are generally treated as separate legal entities, there are circumstances where the court may disregard this separation and hold the parent corporation liable for the actions or debts of its subsidiary. Washington Jury Instruction — 1.9.5.2 provides guidance on identifying these specific circumstances. The application of Washington Jury Instruction — 1.9.5.2 primarily relies on the concept of alter ego. Alter ego refers to a situation where the parent corporation and its subsidiary are so intertwined that they effectively function as a single entity, disregarding the separate legal existence of the subsidiary. The court may "pierce the corporate veil" in cases where the subsidiary is deemed to be the alter ego of the parent corporation. Some situations that may trigger the application of this instruction include: 1. Inadequate Capitalization: When a subsidiary is under capitalized, meaning it lacks sufficient funds to meet its obligations, the court may hold the parent corporation responsible for any resulting liabilities. 2. Common Ownership and Control: The presence of shared ownership and control between the parent corporation and the subsidiary may indicate an alter ego relationship. If the parent exercises significant influence over subsidiary operations or dominates its decision-making processes, the court may disregard the subsidiary's separate legal existence. 3. Co-mingled Finances: If the parent and subsidiary corporations commingle their finances, such as joint bank accounts, or if they fail to maintain separate financial records, it can indicate an alter ego relationship. 4. No Genuine Corporate Separation: When a subsidiary lacks genuine independence, but instead operates primarily for the benefit of the parent and performs tasks traditionally handled by the parent, the court may treat them as a single entity. It is important to note that this instruction is used as a guiding principle and its application depends on the specific facts and circumstances of each case. Jurors must carefully consider the evidence presented and apply their judgment in determining whether the subsidiary should be treated as the alter ego of the parent corporation. In summary, Washington Jury Instruction — 1.9.5.2 Subsidiary As Alter Ego Of Parent Corporation provides a framework for determining when a subsidiary corporation should be considered the alter ego of its parent. By considering relevant keywords such as subsidiary, alter ego, parent corporation, and legal proceedings, this instruction assists jurors in understanding the circumstances in which a subsidiary's actions or liabilities can be attributed to its parent corporation.