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Business Associations Keyed to Hwang, 3rd Ed.
Walkovszky v. Carlton
Citation:
18 N.Y.2d 414 (1966)Facts
Plaintiff John Walkovszky was severely injured four years prior when struck by a taxicab owned by defendant Seon Cab Corporation and negligently operated by defendant Marchese in New York City. Defendant William Carlton was alleged to be a stockholder of ten corporations, including Seon, each owning only two taxicabs and carrying only the minimum required liability insurance of ten thousand dollars. The complaint alleged these seemingly independent corporations were operated as a single entity with shared financing, supplies, repairs, employees, and garaging. Walkovszky asserted that this multiple corporate structure constituted an unlawful attempt to defraud members of the general public who might be injured by the cabs, and sought to hold Carlton and the other stockholders personally liable. Carlton moved to dismiss the complaint for failure to state a cause of action against him personally.
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