Walkovsky v. Carlton

P was run over by a cab in NY. Carlton is a shareholder in 10 corporations, each Corp. registering two cabs and holding the minimal amount of liability insurance on each.

Is there a cause of action against the owner of multiple corporations instead of just one corp?

No Cause of Action (P tried to state a cause of action was fraud)

The cause of action should have been stated that Carlton was doing business in their individual capacities instead of for the corporations.

"Pierce the corporate veil" to prevent fraud or achieve equity.

Whenever anyone uses control of the corporation to further his own rather than the corporation's business, he will be liable for the corporation's acts. If the P complains that the minimum insurance is not high enough, his remedy is with legislation, not the courts. In the dissent, J. Keating wants to legislate from the bench, changing the law toward minimum liability for "a participating shareholder of a corporation vested w/ a public interest, organized with capital insufficient to meet liabilities which are certain to arise in the ordinary course of the corporation's business, may be held personally responsible for such liabilities."