Question: Make sure to use the I - R - A - C format Leslie Iremaker was the sole member of Breakaway, LLC , a construction
Make sure to use the IRAC format
Leslie Iremaker was the sole member of Breakaway, LLC a construction company. Madlyn McGuire hired Breakaway to build a house. McGuire claimed that Iremaker altered the building plans without her consent and made requests for additional payments amounting to $ that were not in the contract. Iremaker eventually quit working before the house was finished, forcing McGuire to hire another company to repair the many construction flaws that Iremaker had left behind.
McGuire filed a breach of contract lawsuit against Iremaker. During discovery, it was found that Iremaker frequently withdrew funds from Breakaway's bank account to pay for their personal expenses and took no steps to distinguish themselves from the corporate entity. Financial records provided by Breakaway during litigation demonstrated that the LLC had very few assets and many debts. Iremaker filed for bankruptcy on behalf of Breakaway, LLC during the pretrial process.
The trial court found that Breakaway had breached the contract with McGuire by charging excessive costs without her approval and failing to perform in a "workmanlike manner." Due to the financial hardships presented by Breakaway, McGuire has asked the court to declare that Breakaway was Iremaker's "alter ego" and pierce the corporate veil to allow McGuire to obtain money directly from Iremaker since their company was insolvent. What is the court likely to rule and why?
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