McKay v. Longman

Summary

The court affirmed the judgment resolving three principal issues. It held that the plaintiff lacked standing to challenge a mortgage to which he was neither a party nor an intended beneficiary, upheld findings that transfers of two properties were fraudulent under the governing fraudulent-transfer statutes, and recognized outsider reverse veil piercing subject to a three-part test. It also upheld the trial court’s application of reverse veil piercing to four entities and its refusal to apply the doctrine to entities with legitimate operations and potentially prejudiced innocent investors.