Vanessa Bernal
Legal, Social, and Ethical Foundations for Business
February 16, 2017
Inter-Tel Technologies, Inc. v. Linn Station Properties, LLC
I. Facts:
There are three companies involved that are getting sued and they are: Telecom Services
Corp (ITS), Inter-Tel Technologies, Inc. (Technologies), and Inter-Tel, Inc. (Inter-Tel).
Two companies were acquired and became wholly-owned subsidiary of the other. It
occurred as following: ITS became subsidiary of Technologies and Technologies
became subsidiary of Inter-Tel. However, ITS was not permitted to hold any funds,
maintain a bank account, or pay any bills. ITS would sell products including Inter-Tel’s
telecommunications from an office building that was leased from Linn Properties, LLC
(Linn Station). Inter-Tel paid ITS’ rent for the Lin Station Road property from the time
Technologies acquired ITS until ITS abandoned the premises in 2002.
II. Issue:
Linn Station filed a suit against ITS, they were seeking damages for failure to repair,
maintain the premises, and for unpaid rent. After multiple and unsuccessful attempts to
satisfy the judgment against ITS; Linn Station sued ITS, Technologies, and Inter-Tel to
pierce the corporate veil and establish Inter-Tel and Technologies’ liability for the
judgment against ITS.
III. Decision:
The trail court granted summary judgement to Linn Station, and the Court of Appeals
affirmed. Technologies and Inter-Tel appealed.
IV. Reasons:
court of entry of judgment against Inter-Tel Technologies.