Enforcement Piercing in the United States: An Overlooked Dimension

67 Pages Posted: 1 Aug 2016 Last revised: 3 Aug 2016

See all articles by Dicky King Fung Tsang

Dicky King Fung Tsang

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Date Written: August 1, 2016

Abstract

The article discusses the overlooked aspect of piercing the corporate veil, namely, the enforcement of subsidiary’s judgment debt against parent company through piercing the corporate veil (“Enforcement Piercing”). Through empirical research of 1,044 piercing cases in the U.S. during a three-year period (2012-2014) conducted by the author, it is found that enforcement piercing cases have a substantially higher piercing rate (52.22%) than non-enforcement piercing cases (33.65%). The article seeks to explain this anomaly by analyzing the potential advantages afforded to plaintiffs in enforcement piercing cases due to favorable conflict of laws rules, particularly those relating to choice of law rules and unclear jurisdictional limitations. It is concluded with suggestions to improve the current regime so as to provide a level playing field to litigants in cross-border piercing cases.

Keywords: private international law, conflict of laws, enforcement of foreign judgment, corporate law, piercing the corporate veil

Suggested Citation

Tsang, Dicky King Fung, Enforcement Piercing in the United States: An Overlooked Dimension (August 1, 2016). The Chinese University of Hong Kong Faculty of Law Research Paper No. 2016-20 , Available at SSRN: https://ssrn.com/abstract=2816704 or http://dx.doi.org/10.2139/ssrn.2816704

Dicky King Fung Tsang (Contact Author)

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

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Kowloon, Sha Tin
Hong Kong

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