Pannell v. Shannon, 425 S.W.2d 58 (Ky. March 20, 2014)

Landlord sued to enforce commercial lease against tenant. Tenant had allowed her limited liability company to be administratively dissolved and entered into an amended lease with landlord in her individual name. The parties did not use attorneys for the preparation or execution of the amended lease and merely struck through the price and square footage entries for their modification. The court of appeals affirmed holding that there was no evidence that tenant intended to enter into the agreement in her individual capacity (even though she prepared and presented a separate agreement to the landlord that absolved her of personal responsibility for debt arising prior to the amended agreement). There further existed inconsistent opinions from different panels on the issue. The supreme court granted discretionary review and affirmed by holding that reinstating a limited liability company provides protection from personal liability in effectively all circumstances.

Corporate/landlord-tenant/corporate shield/ reinstatement/personal liability

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