(How many negatives are in that sentence?)
In disallowing Dennis “Denny” Hecker’s homestead exemption claim today, Bankruptcy Judge Robert Kressel has rejected Dennis E. Hecker’s “insider reverse veil piercing theory,” one of many perhaps convoluted legal theories that has evolved from the invention of the corporation. In a nutshell, Hecker claimed the homestead exemption under bankruptcy laws (designed to protect homeowner’s homes from creditors in bankruptcy) notwithstanding the fact that he, personally, did not own the home. Rather, a corporation owned the home (a corporation that he essentially owned). As Judge Kressel pointed out, there is precedent under Minnesota law for Hecker’s argument (for example, a family-owned farm, with the homestead owned by a corporation set up by the farming family) but he nevertheless distinguished such cases and held that the equities did not favor Hecker in this case.
UPDATE: Hecker has appealed this decision to the District Court (October 5).