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Business Organizations Keyed to Chasalow, 3rd Ed.
Walkovszky v. Carlton
Citation:
18 N.Y.2d 414 (1966)Facts
The plaintiff, John Walkovszky, was severely injured when struck by a taxicab owned by Seon Cab Corporation and operated by defendant Marchese. The defendant William Carlton was a stockholder in ten corporations, including Seon, each owning only one or two taxicabs with only the minimum required liability insurance ($10,000). Walkovszky alleged that although these corporations appeared independent, they were operated as a single enterprise with regard to financing, supplies, repairs, employees, and garaging. The plaintiff claimed that this multiple corporate structure constituted an unlawful attempt to defraud the public who might be injured by the cabs. Carlton moved to dismiss the complaint for failure to state a cause of action, arguing that the corporate form protected him from personal liability.
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