ASSOCIATED VENDORS, INC., Plaintiff and Appellant, v. OAKLAND MEAT CO., INC. et al., Defendants and Respondents, 210 Cal. App. 2d 825

Summary

Upon the lessee's default of rent and vacation of the premises, the lessor relet the premises to a sublessee on the lessee's behalf, at a monthly rental which was less than what the lessee was obligated to pay under the lease. The lessor sought to impose liability for the difference upon a corporation on the theory that the corporation was the alter ego of the lessees. The lessor argued that there was uncontroverted evidence that disclosed factors which required that the corporate entity be disregarded, and that the two elements of unity of ownership and inequity were so conclusively present as to compel the disregard of the corporate entity. The court disagreed and held that there was ample evidence to support the inferences drawn by the lower court that there was not such a unity of interest and ownership as between the lessee and the corporation as to destroy the individuality of the corporations and the stock owners. The court held that evidence of inadequate capitalization was ...