The Maryland Court of Special Appeals issued an opinion in Seriou V. Baystate Properties last week that discusses some interesting issues with respect to 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.