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Representing  Small & Medium Businesses  All Across the Volunteer State

Did Barbour Create an Independent Test for Piercing the Corporate Veil in Tennessee? No.

The Tennessee Court of Appeals recently issued its opinion in F&M Marketing Services, Inc. v. Christenberry Trucking and Farm, Inc., where it noted that the firm's previous opinion in The Oceanics Schools, Inc. v. Barbour, referred to by the court as the "Barbour" case, did not create an independent test for piercing the corporate veil in Tennessee.  

That is quite correct.  In our case, the appellate court simply applied the Allen factors to the facts at issue.  While not explicitly referenced by the Tennessee Court of Appeals in its more recent decision, the signficance of the Barbour case was that it established, for the first time in Tennessee, evidence of fraud was not necessary to pierce.  Rather, all that was required was evidence of an injustice.  

Read the entire opinions for both cases.