Eighth Circuit Court of Appeals
981 F.2d 305 (1992)
Radaszewski (plaintiff) was injured in an automobile accident when the motorcycle he was driving was struck by a truck driven by an employee of Contrux, Inc. Contrux, Inc. is a wholly owned subsidiary of Telecom Corporation (defendant). When Telecom formed Contrux, it contributed loans, not equity, and did not pay for all of the stock that was issued. Telecom did provide Contrux with $1 million in basic liability coverage, and $10 million in excess coverage. Contrux’s excess liability insurance carrier became insolvent two years after Radaszewski’s accident. Telecom argued that the district court lacked personal jurisdiction over it. The question of jurisdiction turned on whether Radaszewski could pierce the corporate veil and hold Telecom liable for the conduct of its subsidiary, Contrux. Telecom argued that the corporate veil could not be pierced on the basis of undercapitalization, because of the insurance it had provided to Contrux. The district court rejected Telecom’s argument that insurance could determine a subsidiary’s financial responsibility. The district court nonetheless held that it lacked jurisdiction over Telecom on other grounds.
Rule of Law
Holding and Reasoning (Arnold, C.J.)
Dissent (Heaney, C.J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 218,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.