HARVEY E. SHELLER, APPELLANT/CROSS-APPELLEE,
v.
HARVEY B. SHELLER, APPELLEE/CROSS-APPELLANT
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Court affirmed the $45,000 debt repayment but reversed the denial of reimbursement for corporate expenditures, holding that a stockholder-president who expended personal funds in good faith to satisfy corporate debts is entitled to repayment as a legitimate corporate creditor.
A stockholder-president who expends personal funds in good faith to satisfy bona fide corporate debts is a legitimate creditor entitled to repayment from corporate assets.
[1] A stockholder-president who expends personal funds in good faith to satisfy bona fide corporate debts becomes a legitimate creditor of the corporation entitled to reimbur…
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Join FLexlaw to unlock all legal intelligence“the appellant is a legitimate creditor of the corporation and entitled to repayment”
Court's reasoning that good faith expenditures for corporate debts create creditor status
Harvey E. Sheller, as president of H.S. Custom Corporation, expended personal funds totaling at least $56,831.93 to maintain corporate assets and sati…
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PER CURIAM.
This appeal results from an action to liquidate the H.S. Custom Corporation.
We affirm the trial court’s award of $45,-000.00 to the appellant because it constitutes the repayment of a debt which the stockholders acknowledged and agreed to repay at their meeting of April 10, 1980.
However, we are compelled to reverse the trial court’s decision not to reimburse the appellant for personal funds which he expended during his tenure as president of the corporation .to maintain corporate assets. Since there is no question that these expenditures were made in good faith to satisfy bona fide corporate debts, the appellant is a legitimate creditor of the corporation and entitled to repayment. Pierce v. Scott, 142 Fla. 581, 195 So. 160 (1940); Emporium, Inc. v. Jones, 396 So. 2d 237 (Fla. 1st DCA 1981). During his testimony, appellant approximated his expenditures at $56,000.00 (this included the $45,000.00 figure). Can-celled checks and other documentary evidence, however, demonstrated expenditures of at least $56,831.93.
Therefore, since we find the other points on appeal and cross-appeal to be without merit, we affirm in part, reverse in part and remand with instructions to amend paragraph 3 of the final judgment to award appellant an equity in the property of the corporation to the extent of $56,831.93.
HERSEY, GLICKSTEIN and HURLEY, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Authorities Cited
- Hines v. State, 142 Fla. 517 (Fla. 1940)
- Pierce v. Wynn W. Scott, 142 Fla. 581 (Fla. 1940)
- Hammond v. City OF Miami, 396 So. 2d 237 (Fla. 3d DCA 1981)