Corporations Lose Liability Shield, Exposing Executives to Lawsuits
The article discusses how the tort of interference with contract can be used to hold a parent company accountable for harming its subsidiary by withholding funds. This tort could potentially bypass the protection of limited liability for the parent company. The elements of the tort are flexible and could be expanded, which might weaken the benefits of limited liability. To prevent this, courts should be cautious in allowing the application of this tort, especially when other ways exist for creditors to protect their interests.