Cheatle v. Rudd's Swimming Pool Supply Co.

This is an appeal from a final decree in equity imposing judgment in personam for compensatory and punitive damages against officers, directors, and shareholders of a bankrupt corporation. The theories of recovery were: fraudulent conveyance, piercing the corporate veil, and fraud and deceit.

The essential facts are undisputed. Prior to 1978, Kenneth M. Rudd, the sole stockholder of appellee Rudd’s Swimming Pool Supply Co., Inc. (Supply), had established a business in Northern Virginia which managed, supplied, and serviced swimming pools and related facilities. One of Rudd’s employees was John…