Favour Mind Ltd. v. Pacific Shores, Inc.
United States District Court for the Southern District of New York
2004 U.S. Dist. LEXIS 637 (2004)
- Written by Sean Carroll, JD
Facts
Robert Czwartacky (defendant) owned 50 percent of Pacific Shores, Inc. (defendant) and managed the company’s operations. Using a line of credit, Pacific Shores ordered garments from Favour Mine Limited (FML) (plaintiff). FML knew that Pacific Shores was a credit risk through a Dun & Bradstreet report but continued to conduct business with Pacific Shores even after Pacific Shores fell behind on payments and reported losses. FML sued Pacific Shores for unpaid invoices and won a default monetary judgment. FML also sued Czwartacky, seeking to pierce Pacific Shores’ corporate veil and hold Czwartacky personally liable for Pacific Shores’ debts. FML presented evidence that Czwartacky withdrew $200 or $300 from a Pacific Shores account for personal or showroom expenses. Nevertheless, Czwartacky filed a motion for summary judgment.
Rule of Law
Issue
Holding and Reasoning (Daniels, J.)
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