Question
William Carlton was a shareholder in ten New York City corporations, including Seon Cab Corporation. Each corporationownedtwotaxicabs,andeachcabwascoveredby only the minimum $10,000 automobile liability insurance required
"William Carlton was a shareholder in ten New York City corporations, including Seon Cab Corporation. Each corporationownedtwotaxicabs,andeachcabwascovered"by only the minimum $10,000 automobile liability insurance required by New York law. A taxicab owned by Seon CabstruckandseverelyinjuredJohnWalkovszky,whosued for damages. Walkovszky named all ten corporations, as well as the individualdrivingthecabthathithim,asdefendants.Theplaintiffallegedthatthecorporations,althoughseeminglyindependentofoneanother,"operated...asasingleentity,unitandenterprise"withregardtofinancing, supplies, repairs, employees, and garaging. The plaintiffassertedthatthemultiplecorporatestructuresconstituted an unlawful attempt "to defraud members of the general public" who might be injured by the cabs. He, therefore,soughttoholdCarlton,theirsoleshareholder,personally liable for his injury.
Isthereanytheoryunderwhichthesoleshareholdercouldbeheldpersonallyliable?Ifso,weresufficientfactsallegedtostateavalidclaim?
Suppose William Carlton's name was conspicuously displayed on thesidesofthetaxicabsownedbythecorporationsandthat he, the sole shareholder, actually serviced, inspected, repaired, and dispatched the taxicabs. Would that make adifferenceastowhetherhecouldbeheldpersonallyliable?
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