The Minnesota Court of Appeals recently ruled that a nonresident parent company may be subject to suit in Minnesota for damages claims against its insolvent Minnesota subsidiary company. The decision would appear to defeat a primary reason for forming a separate subsidiary business entity: the protection of related entities and their assets from potential liability arising from the business operations of the subsidiary.
USA, Minnesota, Insolvency & Restructuring, Litigation, Larkin Hoffman Daly & Lindgren Ltd, Legal personality, Limited liability company, Personal jurisdiction, Debt, Mortgage loan, Good faith, Holding company, Subsidiary, Parent company, Minnesota Court of Appeals, Minnesota Supreme Court