Georgia Court Of Appeals, (September 07, 1982)
Docket number: 63844
DECIDED
POPE, Judge. - DECIDED
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http://vlex.com/vid/sheppard-tribble-heating-conditioning-20463260
Id. vLex: VLEX-20463260
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Judgment affirmed with direction. Deen, P. J., and Sognier, J., concur.

Supreme Court of Georgia - SPINDEL v. JONES et al., 239 Ga. 68, 235 S.E.2.d 486 (1977)
Supreme Court of Georgia - HAUGABROOK v. TAYLOR., 225 Ga. 317, 168 S.E.2.d 162 (1969)
Supreme Court of Georgia - TAYLOR v. GATES et al., 206 Ga. 880, 59 S.E.2.d 365 (1950)
Donald W. Huskins, for appellants.
Tribble Heating & Air Conditioning, Inc. brought this action against Robert W. Sheppard and his wife, seeking to hold Mr. Sheppard personally liable for certain debts of Sheppard & Rivers Construction Co., Inc., and to set aside certain deeds from Mr. Sheppard to his wife as fraudulent conveyances. The complaint also sought damages and attorney fees. The jury returned a special verdict in favor of Tribble, and judgment was entered accordingly. The Sheppards challenge the sufficiency of the evidence to support the verdict.1. Viewed in a light most favorable to upholding the verdict, the evidence at trial showed that Mr. Sheppard was the sole stockholder and director of Sheppard & Rivers Construction Co., Inc. (hereinafter "Sheppard-Rivers") from 1975 through 1978, during which time Tribble performed certain work for the corporation and was not paid. During this time Mr. Sheppard engaged individually in the same business as the corporation. He made all decisions concerning corporate business. Corporate meetings were held infrequently, and the corporation was undercapitalized for the construction business. Employees of Sheppard-Rivers worked on Mr. Sheppard's personal projects as well as corporate projects. Mr. Sheppard's personal business, Sheppard-Rivers and another construction corporation wholly owned by him all occupied the same office.The evidence established a pattern of conduct by Mr. Sheppard whereby he bought land in his own name, built a house thereon through Sheppard-Rivers, and then left the property in his own name or sold it in his own name, leaving suppliers/creditors of Sheppard-Rivers unpaid. The evidence also showed that Mr. Sheppard had intermingled his personal finances with those of Sheppard-Rivers and his other wholly-owned corporation. For example, checks representing proceeds from the sale of houses built by Sheppard-Rivers were deposited to his personal account and to the account of the other wholly-owned corporation. Sheppard-Rivers paid for land deeded to him individually. Sheppard-Rivers assets were used to pay Mr. Sheppard's personal loans, the mortgage on his house, personal attorney fees, and loans of his other wholly-owned corporation."Where the courts have disregarded the corporate entity because the Corporation is the mere alter ego or business conduit of a person, it has generally been on the idea that the corporate entity has been used as a subterfuge and to observe it would be to work an injustice. 'To establish the alter ego doctrine it must be shown that the stockholders' disregard of the corporate entity made it a mere instrumentality for the transaction of their own affairs; that there is such unity of interest and ownership that the separate personalities of the Corporation and the owners no longer exist; and to adhere to the doctrine of corporate entity would promote injustice or protect fraud.' " Farmers Warehouse v. Collins,Try vLex for FREE for 3 days
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