A Pennsylvania-based construction products manufacturer may not hit up the city of Wilkes-Barre for a seven-digit debt owed to it by the city’s redevelopment authority, the Commonwealth Court has ruled.
A three-judge panel concluded the doctrine of piercing the corporate veil to be “wholly inapplicable” to the relationship between a city and its redevelopment authorities because such a maneuver was designed to circumvent the statutory shield that protects equity holders from liability. Equity holders and the city in this case, Judge Robert Simpson said in a 15-page opinion, could not be construed as the same thing.
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