Aztec Management & Investment Co. v. McKenzie

709 S.W.2d 237, 1986 Tex. App. LEXIS 12032
Court of Appeals of Texas·Decided January 30, 1986·No. 13-85-307-CV·Published·Cited by 14 cases

Opinion

OPINION

SEERDEN, Justice.

Whorton Johnson appeals from a judgment against himself, individually, and Aztec Management & Investment Co., Inc. (Aztec) which awarded money damages and attorney’s fees for breach of a contractual duty to furnish water to residential lots. Aztec is not a party to this appeal.

In his first point of error, appellant ar-' gues that there was no evidence to support the trial court’s finding that he, individually, as well as Aztec, had a duty to provide and install water mains at no cost to appel-lees.

In considering a “no evidence” point of error, we will follow the well-established test set forth in Glover v. Texas General Indemnity Co., 619 S.W.2d 400 (Tex.1981); Garza v. Alviar, 395 S.W.2d 821 (Tex.1965); Allied Finance Co. v. Garza, 626 S.W.2d 120 (Tex.App.—Corpus Christi 1981, writ ref’d n.r.e.); CALVERT, No Evidence and Insufficient Evidence Points of Error, 38 Tex.L.Rev. 361 (1960). On review, the court of appeals will uphold the trial court’s findings unless they are manifestly erroneous and without any evidence to support them or are so against the great weight and preponderance of the evidence as to be manifestly wrong. Hinojosa v. Castellow Chevrolet Oldsmobile, Inc., 678 S.W.2d 707, 713 (Tex.App.—Corpus Christi 1984, no writ).

At all times material to these proceedings, Johnson was president of Aztec, a corporation formed with his aged mother. The record does not reveal any other officers or employees of Aztec. Some testimony indicated that Johnson managed his mother’s financial affairs and was in fact solely in control of Aztec. Johnson admits in his brief that the evidence conclusively showed that Aztec had the duty to provide the water mains. The question is whether the evidence justifies piercing the corporate veil.

Appellees point to Johnson’s statements at trial as evidence that Aztec was his alter ego. Specifically, Johnson referred to Aztec as “my water service” and, in discussion of how a resident of the subdivision to be served by Aztec would be connected with the service, stated, “I reserve the right to determine the extent and the direction of its growth concerning the water lines.” Later, Johnson testified, “If it was Aztec’s responsibility and I accepted it and something went wrong, I would still have to fix it.”

If a statement is to be held a judicial admission, it must be deliberate, clear, and unequivocal. William B. Roberts, Inc. v. McDrilling Co., Inc., 579 S.W.2d 335, 345 (Tex.Civ.App.—Corpus Christi 1979, no writ); United States Fidelity & Guaranty Co. v. Carr, 242 S.W.2d 224, 229 (Tex.Civ.App.—San Antonio 1951, writ ref’d). In William B. Roberts, Inc. at 344-345, this Court found that statements made by Roberts at trial that he had considered himself personally responsible for the dealings the corporation made through him as its chief executive officer, and that he believed because of his control of the corporation that he was personally liable for the corporation’s obligations, did not amount to a judicial admission that the corporation was his alter ego. Likewise, the statements made by Johnson are consistent with his controlling the corporation and acting as its president, and do not constitute an admission that the corporation is his alter ego.

The legal concept of a corporation as an entity separate and distinct from its stockholders, officers and directors is fundamental in the law of corporations. In the absence of some exception, neither the officers nor the directors of a corporation are personally responsible for the debts of the corporation. William B. Roberts, Inc. at 345.

In order to establish personal liability for the acts of a corporation under the *239 alter ego doctrine, it is necessary to show that the directors of the corporation disregarded the corporate entity, which, in essence, made it nothing more than a mere conduit or vehicle for the transaction of private business of those sought to be charged with personal liability and that the separateness of the corporation apart from such individuals did, in fact, cease to exist. William B. Roberts, Inc. at 345; Manney & Co. v. Texas Reserve Life Insurance Co., 407 S.W.2d 345, 350 (Tex.Civ.App.—Dallas 1966, no writ).

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Aztec Management & Investment Co. v. McKenzie, 709 S.W.2d 237, 1986 Tex. App. LEXIS 12032 (Tex. Ct. App. 1986).

709 S.W.2d 237 (Aztec Management & Investment Co. v. McKenzie) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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