Can your business really shield you from personal liability in a Florida lawsuit? Many owners are shocked to learn that courts can pierce the corporate veil, pulling them directly into civil litigation when fraud, improper conduct, or abuse of the corporate structure is proven.
Florida courts follow strict standards before holding owners personally liable. The landmark case Dania Jai-Alai Palace, Inc. v. Sykes, 450 So. 2d 1114 (Fla. 1984), sets the bar: mere failure to follow corporate formalities isn’t enough. Courts demand clear evidence of fraudulent conduct, commingling funds, undercapitalization, or using the company for personal gain. Section 607.0833, Florida Statutes, reinforces that directors and officers aren’t automatically liable for corporate actions unless misconduct is shown.
Mistakes like sloppy bookkeeping, mixing personal and business funds, or ignoring corporate formalities can trigger veil piercing. If you’re sued, deadlines to respond are tight—typically 20 days for an answer to a complaint. Missing these deadlines can forfeit your right to defend. Our firm helps clients understand the risks, maintain proper corporate practices, and defend their interests when litigation strikes. Don’t let preventable errors expose you to personal liability.
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Disclaimer: This content is for informational purposes only and does not constitute legal advice, and laws and legal interpretations may change after the date of publication.
Written by:
Gil Sánchez, Esq.
CEO | Civil Trial Attorney
Black Rock Trial Lawyers
Abogados Law
