Masinton v. Dean

STERNBERG, Judge.

Defendants appeal a judgment holding them individually liable for the debt of a corporation. We reverse.

The testimony, at a trial to the court, established that defendant Olive P. Dean (Olive) and her husband, James Dean, Sr., now deceased, operated a restaurant called Harry’s Steak House. The restaurant was owned by the Dean-King Corporation, a closely held corporation formed one month prior to purchasing it. Olive and her husband were the sole officers and shareholders. Evidence was introduced that the corporation was in good standing at all relevant times. Plaintiff sold…