Superman Security or Clark Kent Counterparty-risk? The law on Alter Ego Attachments | Case by Case (Ep. 3)
In this week’s episode, Luke and Calum look to the US Courts and a recent decision on the law regarding “alter ego” attachments.
An “alter-ego” attachment is where a claimant attaches a vessel, or some other asset, owned by a person or corporation that is not, strictly speaking, the respondent to the proceedings on the basis that the person who owns the attached asset is an “alter ego” of the person who is the respondent in the underlying proceedings.
The position under US law is not straight-forward and while there is generally a right to ‘pierce the corporate veil’ in certain circumstances, different US Circuits apply different tests. Luke and Calum look at the tests, the indicating factors for an “alter ego” attachment, and discuss some real-life examples.