Law School Resources
Walkovsky v. Carlton, (1966)
1. Walkovsky v. Carlton, (1966);
pg. 338, briefed 2/24/97
Carlton owns several taxicab corporations. Each
corporation owns two taxicabs. Each taxicab
corporation carries the statutory minimum of $10,000
of insurance per cab. Each corporation is also
highly leveraged. Carlton observed all of the legal
formalities of operating these corporations.
Walkovsky was injured by one of the taxicabs, and
the amount of insurance was not enough to pay his
3. Procedural Posture:
Walkovsky brought this action to "pierce the
corporate veil" and hold Carlton personally liable
for his damages.
Whether a claim that does not allege that the owners
are conducting business in their personal capacities
through the corporation is sufficient to state a
cause of action for owner liability.
It is a general rule that whenever anyone uses
control of the corporation to further his own rather
than the corporationís business, he will be liable
for the corporations acts upon the principle of
respondeat superior. In such a case, the
corporation is merely and "enterprise entity" for
the owners' individual business ends. However, in
the present case, there was no allegation that the
owner was operating the corporation in his own
personal capacity. Whether the insurance coverage
is sufficient is a matter for the legislature.