Motion to Dismiss Granted in Favor of 1031 Exchange Agent
The plaintiff, a large Memphis-based commercial real estate company, filed suit against a 1031 exchange agent alleging that the agent negligently wired nearly $900,000 in funds owned by the real estate company to an unknown criminal computer hacker. The United States District Court for the Northern District of Mississippi granted the 1031 exchange agent’s Motion to Dismiss, finding that the agent could not be held responsible, as a matter of law, for the liabilities of the limited liability company that the agent operated. The Court also rejected the real estate company’s attempt to pierce the LLC’s corporate veil and hold the agent individually liable, ruling that the real estate company failed to set forth any evidence to support any of the factors Courts must consider in such an analysis.
The 1031 exchange agent was represented by Attorneys Tim Peeples and Trey Byars.