In this column, we discuss Mortimer, the enterprise theory of liability generally, and the common sequencing decisions plaintiffs need to make when bringing a veil piercing claim.
In the September 9, 2021 edition of The Legal Intelligencer, Edward T. Kang of Kang Haggerty co-authored “Enterprise Liability and When to Seek Piercing the Corporate Veil.” Continue reading ›
In the July 22, 2021 edition of The Legal Intelligencer Edward T. Kang of Kang Haggerty co-authored “‘Cosby’ and the Use of Prior Bad Acts in the Civil Litigation Context.”
On June 30, the Pennsylvania Supreme Court authored another chapter in the saga of Philadelphia native Bill Cosby. With a career spanning the better part of a century, Cosby had successful forays into music, literature film, television and comedy. In recent years, however, Cosby has been famous for all the wrong reasons. Once known as “America’s Dad,” Cosby has been accused of a crushing deluge of graphic sexual assault allegations. These claims date back to the earliest days of Cosby’s career, span multiple jurisdictions, and have been levied by dozens of women of varying backgrounds and circumstances. Continue reading ›
In the July 8, 2021 edition of The Legal Intelligencer Edward T. Kang of Kang Haggerty co-authored “Protective Orders in the Age of E-Discovery.”
Electronic discovery and its transformational consequences have been a defining feature of 21st century litigation. The sheer proliferation of data and associated complexity has necessitated the development of specialized software to manage and catalog this information. Data have become so complex that protocols surrounding metadata, i.e., data about data, have become a regular aspect of the discovery process. Agreements regarding the use and discoverability of electronically stored information (ESI) are commonplace in any case with a sufficiently large volume of documents. Continue reading ›
In the June 24, 2021 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty, wrote “A Primer on Pennsylvania’s Participation Theory.”
One of the primary benefits of organizing a business as a corporation (or similar entity) is limited liability protection. By establishing the corporation as a separate legal entity, its actions become distinct from the individuals running it. For the corporation’s shareholders, this provides downside certainty; the maximum liability exposure they face (in general) is the value of their investment. Since the losses stemming from personal liability are theoretically infinite, investors relish the corporate form’s ability to mitigate risk. Continue reading ›
Over both of counsel’s objections, the judge allowed the witness to continue with his testimony, in accordance with Pennsylvania Rules of Evidence 702 and 703 and the general acceptance test. This scenario raises the question: what materials can an expert witness rely on in Pennsylvania courts, which follows the Frye standard? And has this changed in recent years?
In the May 20, 2021 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Expert Witnesses in Pa.—What Materials Matter in Forming an Opinion?” Continue reading ›
In the April 15, 2021 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Holding Third Parties Liable for Their Role in Perpetuating the Opioid Crisis.” Continue reading ›
In the March 18, 2021 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “The Dilemma of Lengthy ‘Motion Pending’ Delays in Federal Courts.”
We all know the phrase “justice delayed is justice denied.” Recently, I have been involved in a flurry of discussions with colleagues from the Philadelphia Bar Association relating to this issue. At a recent Federal Courts Committee discussion through the Philadelphia Bar Association, concerns were raised about what to do (or, more accurately, whether anything can be done) when federal court judges do not move a case for an extended (and unreasonably long) period, usually due to a pending motion to dismiss. Continue reading ›
In the January 21, 2021 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Antitrust Suits Against Google Shows Damage Inflicted on Businesses, Consumers.”
In reading the spate of recent antitrust actions taken against all-powerful search behemoth Google, you do not have to go very far to see damage done to businesses in our own backyard. A locally based (Paoli, Pennsylvania) search engine upstart DuckDuckGo, best known for protecting the privacy of its end-users, is one such business affected by Google’s monopoly. Continue reading ›
Despite the rules and security measures that many organizations put in place to protect the personal information of their clients or customers, sensitive information may still fall prey to hackers and other kinds of breaches.
In the November 25, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote, “Data Breach Cases: An Analysis of Standing and Best Causes of Action.”
Despite the rules and security measures that many organizations put in place to protect the personal information of their clients or customers, sensitive information may still fall prey to hackers and other kinds of breaches. Those affected may seek counsel to aid in bringing suit to hold an entity liable for its intermediary role when a third party commits a data breach.. While data breaches have become too common, case law and statutory law governing redress for data breaches is limited. This column explores standing and potential causes of action in data breach suits.
In June, the Pennsylvania Supreme Court granted an appeal that could radically alter existing state law on corporate liability based on the veil-piercing theory. The case, arising from a dram shop tort action, is poised to test Pennsylvania law’s “strong presumption” against piercing the corporate veil.
In the November 5, 2020 edition of The Legal Intelligencer Edward T. Kang, managing member of Kang Haggerty wrote “Pa. Supreme Court to Review Veil-Piercing Appeal Based on Enterprise Theory.”
In June, the Pennsylvania Supreme Court granted an appeal that could radically alter existing state law on corporate liability based on the veil-piercing theory. The case, arising from a dram shop tort action, is poised to test Pennsylvania law’s “strong presumption” against piercing the corporate veil. Hoping to recover damages from an affiliated corporation that was not a defendant at trial, the plaintiff in Mortimer v. McCool, was granted an appeal on the basis of the so-called “single business enterprise” or “single entity” theory. See Mortimer v. McCool, Nos. 20 MAL 2020, (Pa. June 22, 2020). Not currently adopted in Pennsylvania, the theory may be applied to allow a plaintiff to reach the assets of one or more affiliated corporations of the debtor when those “corporations share common ownership and are, in reality, operating as a corporate combine.” See Miners v. Alpine Equipment, 722 A.2d 691,695 (Pa. Super. 1998). Courts discussing or adopting the enterprise theory have found its rightful target to be corporate entities that have integrated business ownership and assets to achieve a common business purpose. Thus, in an important sense, by operating what is essentially a “single business enterprise” split into multiple affiliated entities (often purely for the sake of avoiding liability), owners of such enterprises open the door for the courts to impose shared liability. In the past, I have written about veil-piercing in Pennsylvania generally, as well as in specific regard to LLCs and the “alter ego” theory. This column addresses the implications of the Mortimer appeal and the “enterprise” theory for Pennsylvania corporate liability law.
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