Frigidaire Sales Corporation v. Union Properties, Inc.
Supreme Court of Washington
562 P.2d 244 (1977)
Mannon and Baxter were the co-owners of Union Properties, Inc. (Union) (defendant). Mannon and Baxter were also the limited partners of Commercial Investors, a limited partnership in which Union was the general partner. Commercial had a business relationship with Frigidaire Sales Corporation (plaintiff). Frigidaire sought to hold Mannon and Baxter directly liable for the obligations of Union, because neither Union nor Commercial were adequately capitalized, and because Mannon and Baxter directly controlled Commercial’s operations through Union. The trial court and court of appeals both held that Frigidaire could not get past Union’s limited liability. Frigidaire appealed.
Rule of Law
Holding and Reasoning (Hamilton, J.)