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K.C. Roofing Center v. On Top Roofing, Inc.

Missouri Court of Appeals
807 S.W.2d 545 (1991)


Facts

Over the course of several years, Russell and Carol Nugent were principal owners of a number of small roofing companies solely established by Russell. When one of Russell’s companies went out of business, he created a new business using the same address and telephone number. Kansas City Roofing Center (KCRC) and Lumberman’s Mutual Wholesale Company (Lumberman’s) (collectively, plaintiffs) advanced approximately $45,000 in roofing supplies to Russell’s latest business, On Top Roofing, Inc. (On Top) (defendant). When On Top failed to pay for the supplies, KCRC and Lumberman’s filed suit against On Top and the Nugents in their individual capacities as the owners. At the time On Top requested the roofing supplies, Russell Nugent was aware that the business had no funds to pay plaintiffs, nor did it have the money to pay the other previous suppliers who had advanced approximately $100,000 worth of materials to On Top. Following a bench trial, the trial court “pierced the corporate veil” of On Top and held Russell personally liable for the monies owed to plaintiffs. The Nugents and On Top appealed.

Rule of Law

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Issue

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Holding and Reasoning (Kennedy, J.)

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  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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