The plaintiff filed a breach of contract action against the defendants, asserting that the LLC was a shell corporation and merely the alter ego of the defendants. The LLC ceased its operations in January of 2011, and the family-owned processing company went into involuntary bankruptcy. The LLC paid the plaintiff $495,234 for the eggs, but the LLC owed an additional $248,000 to the plaintiff.
Over the course of five months, the plaintiffs shipped the LLC hundreds of thousands of eggs under the terms of the agreement. The agreement provided that the plaintiff would supply eggs on a weekly basis and that invoices were due within 21 days of receiving the eggs. In July of 2010, the husband entered into a hatching egg purchase agreement with the plaintiff on behalf of the yet-to-be-formed LLC. When the plaintiff inquired about credit information, a bookkeeper employed by another of the defendants’ family entities supplied the plaintiff with credit references for all entities related to the defendants. In early 2010 (before the LLC was formed), the defendants’ daughter contacted a sales manager employed by the plaintiff to see if the plaintiff could supply eggs to the LLC. The plaintiff was a supplier of eggs for hatching. The purpose of the LLC was to purchase eggs for hatching, coordinate delivery of hatched chicks to contracted growers, and coordinate the delivery of the grown birds to a family-owned poultry processing company. They each owned a 50 percent share of an LLC they established in August of 2010. The defendants included a husband and wife who owned a number of poultry-related companies.
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