HARRY J. BARKETT AND PETROLEUM PACKERS, INC., APPELLANTS,
v.
CHARLES T. HARDY, APPELLEE
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The appellate court reversed a final judgment awarding damages for breach of contract. The court found that the lower court erred by entering judgment against a defendant not named in the relevant count and by piercing the corporate veil without a finding of improper conduct.
Yes, the lower court erred in entering judgment against Petroleum Packers, Inc. when it was not named in the relevant count. Yes, the lower court erred in piercing the corporate veil without a finding of improper conduct.
[1] A final judgment cannot be entered against a defendant who was not named in the pertinent pleading.
[2] Piercing the corporate veil requires a showing of improper conduct.
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Join FLexlaw to unlock all legal intelligence“Entering judgment against a defendant not named in the pertinent pleading is clear error.”
Establishes the error in entering judgment against Petroleum Packers, Inc.
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Join FLexlaw to unlock all legal intelligenceThe appellee sued the appellants for breach of contract. One appellant, Petroleum Packers, Inc., was only named in one count of the complaint, for whi…
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PATTERSON, Judge.
The defendants below, Barkett and Petroleum Packers, Inc., appeal from a final judgment awarding damages to Hardy in a breach of contract action. We reverse,
The facts of the case, which are somewhat complex, are not relevant because our determination turns solely on questions of law. Petroleum Packers, Inc., was named as a defendant in only one count of a four-count complaint. On that count, the lower court entered judgment for the defendants. Nonetheless, final judgment was entered against Petroleum Packers, Inc., jointly, for damages rendered in the other counts, to which it was not a party. Entering judgment against a defendant not named in the pertinent pleading is clear error. Gruber v. Cobey, 152 Fla. 591, 12 So. 2d 461 (1943); Freeman v. Freeman, 447 So. 2d 963 (Fla. 1st DCA 1984).
As to defendant Barkett, the lower court predicated liability on a theory of piercing the corporate veil and made the following finding in the final judgment:
In order to successfully pierce the corporate veil, the complaining party must establish that:
1. Corporate formalities were not observed;
2. That the corporation was merely a vehicle for the personal interest of the shareholder of the subsidiary corporations;
3. That the subject corporations lacked equity capital and were, in fact, shells; and
4. That the corporations’ affairs were dominated by another person or another entity by virtue of ownership, control and congruency of established goals.
This is not the correct standard. The corporate veil cannot be pierced absent a showing of improper conduct. Dania Jai-Alai Palace, Inc. v. Sykes, 450 So. 2d 1114 (Fla.1984); Steinhardt v. Banks, 511 So. 2d 336 (Fla. 4th DCA), rev. denied, 518 So. 2d 1273 (Fla.1987). The trial court made no such finding of improper conduct. There being no other basis for liability on the part of Barkett, the judgment must be reversed.
Reversed and remanded with directions to enter judgment for the defendants.
CAMPBELL, C.J., and THREADGILL, J., concur.
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Tanfield C. Miller and Helen A. Miller v. Bruce S. Selden, M.D., 591 So. 2d 1063 (Fla. 4th DCA 1991)…three counts of the complaint contain allegations relevant to the activities of appellant, Tanfield Miller. There are no allegations of any wrongdoing by appellant, Helen Miller. To that extent the final judgment is erroneous. See Barkett v. Hardy, 571 So. 2d 13 (Fla. 2d DCA 1990). This error is conceded by the parties. In count I of the complaint Selden alleges the negligent performance by Tan-field Miller of his accounting function by reason of a violation of the fiduciary relationship which exists betwe…
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Morton S. Corin, M.D. v. Mark Goldberg, M.D., 829 So. 2d 943 (Fla. 3d DCA 2002)…the appellant, Dr. Corin, individually, against whom no relief was sought in any existing pleading. See Milio v. Leinoff and Silvers, P.A., 668 So. 2d 1108 (Fla. 3d DCA 1996); Koehler v. Roberts, 661 So. 2d 374 (Fla. 2d DCA 1995); Barkett v. Hardy, 571 So. 2d 13 (Fla. 2d DCA 1990); Antoniadis v. Earca, 442 So. 2d 1001 (Fla. 3d DCA 1983), pet. for review denied, 451 So. 2d 847 (Fla.1984). His motion for rehearing below, which sought to remove him from the final judgment, should therefore have been granted an…
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Previewing 3 of 7 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Dania Jai-Alai Palace, Inc. v. Sykes, 450 So. 2d 1114 (Fla. 1984)
- Freeman v. Freeman, 447 So. 2d 963 (Fla. 1st DCA 1984)
- Steinhardt v. Vannoy Banks, 511 So. 2d 336 (Fla. 4th DCA 1987)
- Gruber v. Cobey, 152 Fla. 591 (Fla. 1943)