Diamond Paint Company of Houston v. Embry

CURTISS BROWN, Justice.

This case originated in a loan transaction. W. D. “Don” Shepherd (Shepherd) was active in many business and promotional activities including a number of corporations containing the word “Diamond” in their name. He was a major stockholder and dominated the activities of these companies which were often managed with very little regard for corporate formalities. Diamond Paint Company (Paint) was a viable and somewhat successful company. Shepherd organized Diamond Industries (Industries) for the purpose of holding stock in other “Diamond” companies including Paint. At the…