Pinnacle North, LLC v. White (Michigan Court of Appeals Affirms Veil-Piercing to Collect Commercial Lease Default)
The Michigan Court of Appeals affirmed a trial court ruling piercing the corporate veil of a defaulted commercial tenant, Marketplace Home Mortgage, LLC, to hold its principal personally liable for a $52,548.24 lease-default judgment owed to landlord Pinnacle North, LLC. The court also affirmed a finding that a $50,000 payment the tenant made to its principal around the time of its sale was a voidable transfer under Michigan's Uniform Voidable Transactions Act.
Why it matters
The ruling gives commercial landlords appellate-level Michigan precedent for converting an uncollectible judgment against an insolvent corporate tenant into personal liability against the individual who ran it, particularly where a sale or wind-down left lease liabilities behind while value moved to insiders.
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