The Maryland Court of Special Appeals issued an opinion in Seriou V. Baystate Properties last week that discusses some interesting issues regarding piercing the corporate veil and Maryland, and when a court can allow a lawyer to strike an appearance.
Under Maryland law, LLCs are normally protected from personal liability. There are, however, instances when a Maryland court will find that members can be personally liable in order to “prevent fraud or enforce a paramount equity.” This is called “piercing the corporate veil.”
In this case, the builder and the owner of the LLC entered into a contract. The builder was to build two houses on the owner’s property. Although the builder completed building the two houses, the builder was not paid for services.