Friday, November 22, 2013

Radaszewski v. Telecom Corp. case brief

Radaszewski v. Telecom Corp. case brief summary
981 F.2d 305 (1992)


CASE SYNOPSIS
Plaintiff appealed from the order of the United States District Court for the Western District of Missouri finding that it did not have jurisdiction over the person of a defendant in plaintiff's action for personal injuries.

CASE FACTS
Plaintiff filed suit against defendants, subsidiary and parent corporations, for personal injuries sustained in a motorcycle accident involving defendant subsidiary. Plaintiff attempted to pierce the corporate veil to hold defendant parent financially liable for defendant subsidiary's actions. The parties acknowledged that defendant parent's only contact with the state in which the accident occurred was through defendant subsidiary. The lower court held that it did not have personal jurisdiction over defendant parent, and dismissed without prejudice.

DISCUSSION

  • On appeal, the court affirmed, but held that defendant parent was dismissed with prejudice because plaintiff made no showing of material fact that defendant parent fraudulently or wrongly undercapitalized defendant subsidiary. 
  • The purchase of insurance demonstrated the financial responsibility necessary to defeat that claim. 
  • Because plaintiff was unable to pierce the corporate veil, the court did not have personal jurisdiction over defendant parent, and the defect was not curable.
CONCLUSION
The court affirmed the dismissal for lack of personal jurisdiction, holding that plaintiff made no showing of any genuine issue of material fact with respect to dishonesty or improper-conduct by defendant parent, and dismissed the action with prejudice because failure to meet that element was not curable.

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