Afraid of SBE Liability?

The Baton Rouge Business Report warns its readers to be very afraid of "a risky and little-known experiment" being carried out by Louisiana courts--the corporate liability theory known as the single business enterprise doctrine. The doctrine allows courts to hold parent and sister companies liable for the debts of separately incorporated businesses, without any proof of wrongdoing. Characterized as a veil-piercing mutant, LSU Law vice chancellor Glenn Morris warns that the doctrine created by the Louisiana First Circuit Court of Appeal in the Green v. Champion case must be addressed quickly: "Once people have a vested interest in a doctrine, it becomes hard to repeal."