Restaurant of Hattiesburg, LLC v. Hotel & Restaurant Supply, Inc.

MAXWELL, J.,

for the Court:

¶ 1. The question we must decide is under what circumstances a creditor may circumvent the legal fiction of limited liability and hold LLC members and/or a separate commonly owned LLC responsible for the LLC’s debt. We find the three-prong test for piercing the veil of corporations, established in Gray v. Edgewater Landing, Inc., 541 So.2d 1044, 1047 (Miss.1989), is also the appropriate test for piercing the veil of LLCs. And because Hotel and Restaurant Supply, Inc. (HRS) failed to establish all three prongs were indisputably met, we find the circuit court erred by…