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Walkovszky v. Carlton

Court of Appeals of New York
18 N.Y.2d 414, 276 N.Y.S.2d 585, 223 N.E.2d 6 (N.Y. 1966)



William Carlton (defendant) owned a large taxicab business. Carlton was a controlling shareholder of 10 different corporations, each of which held title to two cabs and no other assets. Each cab carried $10,000 in car liability insurance, which was the minimum required by state law. John Walkovszky (plaintiff) alleged that he was struck and injured by a cab owned by Seon Cab Corporation (defendant), one of Carlton’s entities. Walkovszky 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 accordingly. Carlton moved to dismiss the complaint as to him personally for failure to state a cause of action. The trial court granted the motion. Walkovszky appealed, and the appellate court reversed, reinstating the complaint as to Carlton. Carlton appealed.

Rule of Law


Holding and Reasoning (Fuld, J.)

Dissent (Keating, J.)

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