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Walkovsky v. Carlton

Court of Appeals of New York
223 N.E.2d 6 (1966)


Facts

Carlton (defendant) owns a large cab business. He is a controlling shareholder of 10 different corporations, each of which holds title to two cabs and no other assets. Each cab carries $10,000 in car liability insurance, the minimum required by state law. Walkovsky (plaintiff) alleges that he was struck and injured by a cab owned by Seon Cab Corporation (defendant), one of Carlton’s entities. Walkovsky sued Carlton, Seon Cab Corporation, and each of Carlton’s other cab corporations, arguing that they all functioned as a single enterprise and should be treated as such. Carlton moved to dismiss the complaint as to him personally for failure to state a cause of action. The trial court granted the motion. Walkovsky appealed, and the appellate court reversed, reinstating the complaint as to Carlton. Carlton appealed.

Rule of Law

Issue

Holding and Reasoning (Fuld, J.)

Dissent (Keating, J.)

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