Our client, a landlord, had not received payment for rent by its tenant, a corporation.
At law, a corporation is considered a separate entity that is responsible for the debts of the corporation, limiting the liability of its shareholders. To enhance our chances of success, we brought an action for non-payment of rent against not only the corporate tenant but also its principal shareholder.
We were successful in obtaining an order for payment in full against not only the corporate tenant but also its principal shareholder personally. This is known as “piercing the corporate veil”.