1. Benjamin is the sole shareholder of ten corporations, each organized to operate a taxi service. Each corporation owns a single taxicab, each of which is operated by drivers whom Benjamin hires.The corporations each have the minimum liability insurance coverage required by law in the amount of $100,000 for damages to a person or persons injured by the negligent operation of a taxi. Benjamin is president of each corporation and is the sole director of each corporation.

Paul, a pedestrian, is seriously injured due to the negligence of Davis, the driver of a taxi owned by ABC Taxi Corp., one of the ten corporations. In a lawsuit by Paul against ABC Taxi Corp., the jury awarded Paul a judgment of $700,000. Paul has collected $100,000 from the insurance, and $40,000 from ABC Taxi Corp.'s bank account. ABC Taxi Corp. has no other assets. The taxi owned by ABC Corp. was demolished in the accident.

(a) Does Paul have a cause of action against Benjamin to recover the unpaid balance of $560,000 on the judgment?What would Paul have to prove?

(b) Paul also sues the other nine corporations.What would Paul have to prove to try to hold the other nine corporations responsible for the $560,000?

(c) Would Benjamin be personally liable for Paul's injuries if he had taken Davis' place as the driver on the day of the accident? Explain.

(d) Would Jack, another driver for ABC Taxi Corp. have a cause of action against Benjamin for the unpaid salary due to him for his work as a driver prior to the accident? Explain. (FYI: we discussed this in class briefly).