The Illinois Appellate Court for the First District has affirmed a judgment that pierced the corporate veil of a closely held corporation and then awarded the plaintiff attorney fees connected to this litigation. The case was reported to be one of first impression in Illinois.
Steiner Electric sold electrical products on credit to Delta Equipment Co., a corporation wholly owned by an individual, Leonard Maniscalco. Although there were many attempts to collect payment, Steiner finally sued Delta and obtained a default judgment for the purchase price plus interest, attorney fees and costs. By the time judgment was entered, Delta no longer existed. Steiner filed suit against Maniscalco and Sackett Systems Inc., another corporation wholly owned by Maniscalco. That lawsuit sought to pierce Delta’s corporate veil and hold both Maniscalco, individually and Sackett Systems Inc., liable for the default judgment.
Steiner was successful in proving that it was entitled to pierce the veil wherein both Maniscalco and Sackett Systems appealed from that order.