S-23-0947 Perkins, L.L.C. et al. (Appellants) v. RMR Building Group, LLC, and Robert M. Ryan, II (Appellees)
Appeal from the Nebraska Court of Appeals on appeal therefrom the District Court for Douglas County, Judge Jeffrey J. Lux
Attorneys: Steven G. Ranum and Josiah J. Shanks (Croker, Huck, Kasher, DeWitt, Anderson & Gonderinger, L.L.C. for Appellants), Robert F. Bartle (Bartle & Geier for Appellants) and Michael J. Mullen (Attorney at Law for Appellee)
Civil: Piercing the limited liability veil
Proceedings Below: After Appellants sued Appellees, the district court awarded Appellant damages of $549,916.58 but declined to pierce the limited liability veil. On appeal, the Nebraska Court of Appeals determined that the evidence supported piercing of the company’s limited liability veil and reversed and remanded the district court’s decision. See Perkins, L.L.C., et al. v. RMR Building Group, LLC, and Robert M. Ryan, III, A-23-0947 (April 1, 2025). Appellee petitioned for further review, which the Nebraska Supreme Court sustained and ordered that this case be transferred to its docket.
Issues: In the petition for further review, Appellees assign the following errors: 1) The Court of Appeals erred in piercing the corporate veil and imposing personal liability upon Ryan; 2) The Court of Appeals erred in finding there was evidence that RMR was undercapitalized at the time it was formed, and the Court of Appeals applied the incorrect standard by finding that there was merely evidence of undercapitalization as opposed to finding RMR was grossly undercapitalized; 3) The Court of Appeals erred in finding that the insolvency factor “strongly favors” piercing the corporate veil and is indicative of fraud in this case; 4) The Court of Appeals erred in incorrectly applying a de novo standard of review without giving deference to the trial court, which, as the finder of fact, heard and observed the witnesses and decided conflicting issues of fact; 5) The Court of Appeals erred in finding that Ryan improperly appropriated RMR funds for his personal use; and 6) The Court of Appeals erred in finding Ryan jointly and severally liable with RMR in the amount of $549,916.58.