Sikousis Legacy Inc v B-Gas Limited - United States Court of Appeals for the Ninth Circuit No 23-15245 - Opinion - 25 March 2024
Country
Year
2024
Summary
Admiralty
The panel affirmed the district court's order vacating plaintiffs' quasi in rem attachment of a vessel owned by Bergshav Aframex Ltd., a defendant in an admiralty action seeking fulfillment of arbitration awards.
The arbitration awards, arising from a contract dispute, were owed to plaintiffs by a different corporate entity, B-Gas Ltd., later renamed Bepalo. Plaintiffs sought to "pierce the corporate veil" of Bepalo and hold Aframax liable for the arbitration awards on a theory that Aframex and Bepalo were alter egos.
The panel held that the district court did not abuse its discretion when it vacated the pre-judgment attachment of the vessel. Adopting a probable cause standard, and applying federal common law, the panel affirmed the district court's conclusion that plaintiffs failed to show a reasonable probability of success on their veil piercing theory.