Walkovszky v. Carlton

Decision Date05 February 1968
CitationWalkovszky v. Carlton, 287 N.Y.S.2d 546, 29 A.D.2d 763 (N.Y. App. Div. 1968)
PartiesJohn WALKOVSZKY, Respondent, v. William CARLTON, Appellant, et al., Defendants.
CourtNew York Supreme Court — Appellate Division

Lawrence Lauer and John Winston, New York City, for plaintiff-respondent. Lawrence Lauer, New York City, of counsel.

Friedlander, Gaines, Ruttenberg & Goetz, New York City, for defendant-appellant, Carlton. Norbert Ruttenberg, Stephen A. Cohen, New York City, of counsel.

Before CHRIST, Acting P.J., and BRENNAN, HOPKINS, RABIN and MUNDER, JJ.

MEMORANDUM BY THE COURT.

In a negligence action to recover damages for personal injury, defendant Carlton appeals, as limited by his brief, from so much of an order of the Supreme Court, Richmond County, dated August 10, 1967, as denied his motion to dismiss the amended complaint on the ground that it fails to state a cause of action against him (CPLR 3211, subd. (a), 7).

Order affirmed insofar as appealed from, with $30 costs and disbursements and with leave to appellant to serve an answer to the amended complaint within 20 days after service of a copy of the order entered hereon with notice of entry.

In our opinion, the amended complaint sufficiently alleges a cause of action against appellant, i.e., that he and the other individual defendants were conducting the business of the taxicab fleet in their individual capacities.

CHRIST, Acting P.J., BRENNAN, HOPKINS and MUNDER, JJ., concur.

RABIN, J., dissents and votes to reverse the order insofar as appealed from and to grant the motion to dismiss the amended complaint, with the following memorandum:

In my opinion, the newly added allegations in the amended complaint, either singly or cumulatively, do not cure the defect that was inherent in the original complaint. In the amended complaint plaintiff still fails to set forth facts indicating that defendant Carlton and his associates are actually doing business in their individual capacities, 'shuttling their personal funds in and out of the corporations 'without regard to formality and to suit their immediate convenience ". (Walkovszky v. Carlton, 18 N.Y.2d 414, 420, 276 N.Y.S.2d 585, 590, 223 N.E.2d 6, 10.) As I read it, in the amended complaint, plaintiff has vaguely and prematurely pleaded conclusions which, if factually supported or established, would lend to plaintiff some status if he were pursuing a judgment creditor's action, which is not the character of the instant action (Walkovszky v. Carlton, supra, p. 421,...

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6 cases
  • People v. Peacock
    • United States
    • New York Supreme Court — Appellate Division
    • February 5, 1968
  • House of Koscot Dev. Corp. v. American Line Cosmetics, Inc.
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • October 25, 1972
    ...Walkovszky v. Carlton, 18 N.Y.2d 414, 276 N.Y.S.2d 585, 223 N.E.2d 6 (1966) with a later opinion in the same litigation, 29 A.D.2d 763, 287 N.Y.S.2d 546 (2d Dept. 1968). However, in the case sub judice there was evidence that American Line was dominated by Turner through Koscot. Koscot paid......
  • Kindermann's Estate v. Christian Science Board of Directors of the Mother Church
    • United States
    • New York Court of Appeals Court of Appeals
    • February 14, 1968
  • Worldwide Carriers, Ltd. v. Aris Steamship Co.
    • United States
    • U.S. District Court — Southern District of New York
    • August 29, 1968
    ...31 F.R.D. 154 (S.D.N.Y.1962); Walkovszky v. Carlton, 18 N.Y.2d 414, 276 N.Y. S.2d 585, 223 N.E.2d 6 (1966); Walkovszky v. Carlton, 29 A.D.2d 763, 287 N.Y.S.2d 546 (2nd Dep't 1968). Plaintiff's complaint (¶¶ 12-20 incl.) sets forth the interrelationship between the moving defendants and char......
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2 books & journal articles
  • The Separate Corporate Entity: Privilege And Its Limitations; Piercing The Corporate Veil
    • United States
    • ABA General Library Corporate Counsel Guides: Corporation Law
    • July 3, 2012
    ...that have pierced the veil when the facts suggest the corporation is a sham. 39 In a leading case, the New York Court of Appeals in Walkovszky v. Carlton 40 refused to apply the “thin capitalization” theory of piercing the corporate veil. The individual defendant was the sole shareholder of......
  • David Millon, Piercing the Corporate Veil, Financial Responsibility, and the Limits of Limited Liability
    • United States
    • Emory University School of Law Emory Law Journal No. 56-5, 2007
    • Invalid date
    ...to reflect the court's opinion, the defendants again moved for dismissal. This time the motion was denied. Walkovszky v. Carlton, 287 N.Y.S.2d 546 (N.Y. App. Div. 1968), aff'd, 244 N.E.2d 55 (N.Y. 1968). Thereafter the case presumably settled. 219 Walkovszky, 223 N.E.2d at 9 (quoting trial ......