Friday, November 22, 2013

DeWitt Truck Brokers v. W. Ray Flemming Fruit Co. case brief

DeWitt Truck Brokers v. W. Ray Flemming Fruit Co. case brief summary
540 F.2d 681 (1976)


CASE SYNOPSIS
Appellants, corporation and its president, sought review of a judgment from the United States District Court for the District of South Carolina, which granted appellee creditor's request in a debt action to pierce the corporate veil and to impose liability on appellant president individually.

CASE FACTS
Appellee creditor brought an action on debt against appellants, a corporation and its president. The district court granted appellee's request to pierce the corporate veil and to impose liability on appellant president individually.

DISCUSSION

  • The court affirmed the judgment, holding that the finding of the district court that the corporate entity should be disregarded was not clearly erroneous. 
  • The court determined that there was evidence to sustain the finding that there was a complete disregard of corporate formalities in the operation of appellant corporation, which functioned only for the financial advantage of appellant president. 
  • The evidence also supported the finding that appellant corporation was undercapitalized. 
  • Additionally, the court determined that appellant president made personal assurances to appellee that he would take care of the charges personally if appellant corporation failed to do so. 
  • The court concluded that equity and fundamental justice supported the individual liability of appellant president for appellee's charges.

CONCLUSION
The court affirmed a judgment that granted appellee creditor's request in a debt action to pierce the corporate veil and to impose liability on appellant president individually. The court held that the district court's findings were not clearly erroneous, and it determined that equity and fundamental justice supported the individual liability of appellant president.


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