Facts
The [G.] cooperative was founded in 1974 and has the purpose of acquiring and selling agricultural businesses, as well as operating organic fruit and vegetable cultivation. The debtor [S.] has been the sole-signatory president of the cooperative's board of directors since its foundation to this day. The cooperative purchased parcel No. zzzz in 1975 and in 1997 parcel No. xxxx was detached and sold to the [F.] family foundation. The Swiss Confederation, the canton of Obwalden, and the municipality of [E.] prosecuted the debtor for outstanding taxes and obtained a provisional loss certificate of around 4.9 million francs. The cooperative asserted a claim of ownership for parcel No. zzzz, which was contested by the respondents.
The Cantonal Court of Obwalden and the High Court of the Canton of Obwalden dismissed the cooperative's opposition lawsuit and affirmed the inclusion of its assets in the compulsory execution against the debtor. The cooperative filed a complaint with the Federal Supreme Court.
Considerations
The Federal Supreme Court reviewed the complaint and came to the conclusion that the conditions for a piercing of the corporate veil are met. The debtor had dominated the cooperative from its foundation to this day, exercising all decision-making powers in all matters and without effective control. The cooperative had never pursued its actual purpose and had been conceived as a real estate company from the beginning.
The Federal Supreme Court saw an insufficient consideration of the…