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Minton v. Cavaney

Supreme Court of California
364 P.2d 473 (1961)


Facts

Seminole Hot Springs Corporation (Seminole) operated a swimming pool at a leased facility. Seminole had no assets other than the lease, which it ultimately lost for nonpayment of rent. Cavaney (defendant) was a director of Seminole, as well as the corporation’s secretary and treasurer. Seminole never issued shares of stock but once proposed to issue three shares, with one going to Cavaney. Seminole’s records were stored for a time at Cavaney’s office, which also served at least occasionally as the corporation’s mailing address. The plaintiff’s daughter drowned in the pool which Seminole operated. The plaintiffs won a $10,000 judgment against Seminole, which has not been satisfied. They then sued Cavaney to hold him personally liable for the judgment. The trial court found in favor of the plaintiffs, and Cavaney now appeals.

Rule of Law

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Holding and Reasoning (Traynor, J.)

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