Wisconsin Jury Instruction - 1.9.5.1 Corporation As Alter Ego Of Stockholder

• Category: Federal - Jury Instructions
• State: Multi-State
• Control #: US-11CF-1-9-5-1
• Format: Word; Rich Text

Description

This form contains sample jury instructions, to be used across the United States. These questions are to be used only as a model, and should be altered to more perfectly fit your own cause of action needs.

Wisconsin Jury Instruction 1.9.5.1 — Corporation As Alter Ego Of Stockholder: A Detailed Description Wisconsin Jury Instruction 1.9.5.1 addresses the legal concept of "corporation as alter ego of stockholder." This instruction is relevant in cases where a plaintiff seeks to hold a corporation liable for the wrongful actions or debts of its stockholder(s) by arguing that the corporation is merely a shell or alter ego of the stockholder(s). The instruction helps guide the jury in determining whether piercing the corporate veil is appropriate, thereby holding the corporation responsible for the acts or debts of its stockholder(s). Keywords: Wisconsin, jury instruction, 1.9.5.1, corporation, alter ego, stockholder, liability, piercing the corporate veil. In Wisconsin, as in many other jurisdictions, a corporation is generally considered a separate legal entity from its shareholders, thus shielding shareholders from personal liability for the corporation's obligations. However, under certain circumstances, known as "piercing the corporate veil," the courts may disregard the corporate entity and hold shareholders personally liable. Wisconsin Jury Instruction 1.9.5.1 is designed to help the jury understand and apply this complex legal doctrine. The instruction identifies that there are situations where the corporate veil should be pierced if it can be proven that the corporation is merely an alter ego or sham used by the stockholder(s) to perpetrate fraud, evade legal obligations, or unjustly enrich themselves. This concept is based on the equitable principle that courts should not allow individuals to shield themselves from liability by using the corporate form as a façade. The jury is instructed that they must evaluate various factors and the totality of the circumstances before deciding whether to disregard the corporate entity. These factors might include whether there is substantial control of the corporation by the stockholder(s), inadequate capitalization, failure to observe corporate formalities, commingling of assets, and whether the corporation is used in a way that promotes injustice or fraudulent practices. These factors help determine if the corporation is indeed an alter ego of its stockholder(s), warranting piercing of the corporate veil. It is important to note that Wisconsin Jury Instruction 1.9.5.1 does not create a strict set of rules, but rather provides guidance for the jury in evaluating the evidence and determining the liability of the corporation. The jury is responsible for considering the specific facts of each case and applying the law to those facts. In addition to Wisconsin Jury Instruction 1.9.5.1, there may also be variations or different types of instructions related to the altar ego doctrine. Some potential variations or related instructions could involve specific industries or types of corporations, such as closely held corporations, professional corporations, or limited liability companies (LCS). These variations may emphasize specific factors or considerations that are unique to those specific entities or industries. Overall, Wisconsin Jury Instruction 1.9.5.1 is an important tool for instructing juries on the alter ego doctrine and determining whether a corporation can be held liable for the actions or debts of its stockholder(s). By considering the relevant factors and carefully weighing the evidence, the jury plays a crucial role in unraveling complex corporate structures and ensuring that justice is served.