Opinion ID: 853313
Heading Depth: 2
Heading Rank: 3

Heading: Personal Liability and Piercing the Corporate Veil

Text: Roseman argues that an important cornerstone of Indiana law is respect for the corporate form, and that he may not be held personally liable unless RLG disregarded corporate structure and served as a mere instrumentality for his own business sufficient to pierce the corporate veil. We do not agree that Roseman's liability depends on piercing the corporate veil. In general, that doctrine holds individuals liable for corporate actions based on the failure to observe corporate formalities. Aronson v. Price, 644 N.E.2d 864, 867 (Ind.1994). The corporate veil is pierced only where it is clear that the corporation is merely a shell for conducting the defendant's own business and where the misuse of the corporate form constitutes a fraud or promotes injustice. Id. Unlike the responsible corporate office doctrine, or specific statutory liability, veil piercing is not dependent on the nature of the liability. In contrast, Roseman's liability here is essentially based on his individual participation in the violations, their character as violations of laws affecting public health, and specific statutory liability. The responsible corporate officer doctrine is distinct from piercing the corporate veil, and explicitly expands liability beyond veil piercing. See United States v. Dotterweich, 320 U.S. 277, 282, 64 S.Ct. 134, 88 L.Ed. 48 (1943) (If the [FDCA] were construed [to limit liability to the corporation], the penalties of the law could be imposed only in the rare case where the corporation is merely an individual's alter ego.). The same is plainly true of statutory liabilities. We agree that the record in this case does not support piercing the corporate veil. Roseman is entitled to the benefit of corporate limited liability even if he owned all of the shares of RLG and was its only officer and director. A corporate officer is not liable simply because of his position within the corporation. United States v. Park, 421 U.S. 658, 674, 95 S.Ct. 1903, 44 L.Ed.2d 489 (1975). A corporate officer may, however, be held personally liable if he was actively involved in the activity that violates the statute. United States v. Conservation Chem. Co., 733 F.Supp. 1215, 1221 (N.D.Ind.1989). For the reasons discussed in Part II, Roseman is also liable under Indiana's Environmental Management Act.