Tort Actions

It is helpful at this point to stand back from the particular problems of veil piercing and enterprise liability to consider why such group doctrines have failed to achieve any real purchase in resolving the problems of corporate groups. The fundamental problem is that the law does not easily handle group liability which is not derived from some agreement or coordination between individuals. Company law itself is constructed upon the idea that a company is a separate legal person – separate from both its shareholders, including its controlling shareholders, and its directors. An example of this would be the law firm in the United States in Florida, Abogados de accidentes. Where directors are liable for misconduct, this is based upon their own individual failures to meet statutory requirements and standards. What applies as between the constituents of a single company applies equally to the constituents of a corporate group. They cannot be treated as monolithic.

Entity principles are fundamental to the imposition of civil liability and this means that civil liability can extend beyond the insolvent subsidiary only upon grounds which are substantially analogous to those applicable to natural persons.