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Res Judicata is No Bar to Pierce Corporate Veil

Plaintiff, as agent of the beneficiaries of Cosmopolitan Bank as Trustee of a trust, filed a complaint for unpaid rent under a retail lease. Prior to this action, the plaintiff won a default judgment against defendant for unpaid rent under the same lease.  Defendant dissolved thus plaintiff sued the shareholders and directors of Defendant in an effort to pierce the corporate veil.  The shareholders argued that the second action must be dismissed on the basis of res judicata.  The appellate court disagreed with defendants and stated that "a judgment creditor may choose to file a new action to pierce the corporate veil of a judgment debtor in order to hold individual shareholders and directors liable for a judgment against the corporation."  Miner v. Fashion Enterprises, Inc., No. 1-00-3746 (1st Dist. July 15, 2003).

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