The alleged owner of a behavioral health facility for girls has been dismissed from a negligence lawsuit, but he could still face liability in the case against Mingus Mountain Youth Treatment Center near Prescott.
Thirteen former center residents allege that they were subjected to a range of sex crimes between 2011 and 2022. And their lawyers want defendant John Ripley held personally and vicariously responsible.
But a judge recently dismissed personal claims against Ripley, at least for now.
“The plaintiffs can still pursue liability on behalf of the corporations for acts that Ripley is alleged to have orchestrated,” said business attorney Larry Wulkan, who is not involved in the case.
Wulkan also said personal claims against Ripley could be reinstated, if the plaintiffs, through limited discovery, find documents or testimony showing Ripley had operational control over corporate entities that remain defendants.
Piercing the corporate veil around Mingus Mountain Youth Treatment Center is the goal of negligence claims brought by former residents who say they were abused, according to the judge overseeing the lawsuit.
Wulkan said the judge found that the allegations, though serious, did not warrant lifting the corporate veil.
“There must be ties to financial structure. Intermingling of funds. Failure to adhere to corporate formalities. Or the misuse of the entity to insulate individuals from liability,” Wulkan said.
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