Taszarek, et al. v. Lakeview Excavating, Inc., et al.

Brian Welken appealed a district court judgment piercing Lakeview Excavating, Inc.’s corporate veil and holding him personally responsible for money damages awarded to Eugene Taszarek, Marlys Taszarek, Trina Schilling, Steven Taszarek, and Michael Taszarek. In the spring of 2012, German Township in Dickey County, North Dakota selected Lakeview Excavating as a contractor for FEMA-funded road projects. Welken was Lakeview Excavating’s president and sole shareholder. A farmer who owned land adjacent to land owned by the Taszareks permitted Lakeview Excavating to enter his property to harvest field rock used for the road projects. However, Lakeview Excavating also took rock from the Taszareks’ property that was used in the road projects. The Taszareks sued Lakeview Excavating and Welken for intentional trespass, conversion of property, and unjust enrichment. The trespass and conversion claims were tried to a jury. The jury returned a verdict in the Taszareks’ favor, finding Lakeview Excavating was the alter ego of Welken and holding both parties liable for damages. The North Dakota Supreme Court reversed and remanded, concluding that while Welken had consented to the jury deciding the alter ego issue, the district court did not adequately instruct the jury on the alter ego doctrine. On remand the district court ordered a March 2018 bench trial on the issue of whether Lakeview Excavating was the alter ego of Welken, concluding Lakeview Excavating was the alter ego of Welken and ruled the Taszareks could recover damages from either Welken or Lakeview Excavating. Welken argued on appeal the district court erred in piercing Lakeview Excavating’s corporate veil and holding him personally liable for the Taszareks’ damages. The Supreme Court again reversed, concluding the district court did not make adequate findings of fact under N.D.R.Civ.P. 52(a), and its findings relating to piercing Lakeview Excavating’s corporate veil were inadequate to permit appellate review. View "Taszarek, et al. v. Lakeview Excavating, Inc., et al." on Justia Law