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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

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Issue

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Holding and Reasoning (Fuld, J.)

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Dissent (Keating, J.)

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