Legislative updates

There are no new updates at this time.

Case summaries

Member Liability for an LLC’s Taxes
State ex rel. Arizona Department of Revenue v. Tunberg, No. 1 CA-TX 18-0008, decided April 21, 2020. The Arizona Court of Appeals held that the member/CEO of an LLC could be held personally liable for the LLC’s unpaid transaction privilege tax where he had assumed a duty to remit what the LLC had collected from customers. The court pointed out that the member knew the CFO had stopped paying the taxes and although he had the power and authority to delegate the task to someone else he failed to do so.
Alter Ego Claim
Specialty Companies Group LLC v. Meritage Homes of Arizona Inc., No. 1 CA-CV 18-0708, decided February 25, 2020. The Arizona Court of Appeals held that an alter ego claim is not a separate cause of action but a means of imposing liability on an underlying cause of action and as such is governed by the statute of limitations applicable to the underlying cause of action to which the claim the piercing of the corporate veil is tied.

State notices

March 9, 2020 — The Arizona Corporation Commission issued a release reminding investors to be on the lookout for scam artists looking to profit from fear and uncertainty caused by the market downturn and coronavirus scare. Read the release, which contains information on how to identify possible investment fraud.