Opinion
October 9, 1957.
November 12, 1957.
Corporations — Disregarding corporation fiction — Corporation formed to avoid liability to defendant's creditors — Succession to defendant's business — Attachment execution.
1. The corporate fiction will be disregarded and the individuals and corporation considered as identical whenever justice or public policy demands it and when the rights of innocent parties are not prejudiced thereby.
2. In an attachment execution proceeding, in which it appeared that the garnishee was indebted to corporation G; and that the trial judge found that corporation G had been formed by relatives of defendant for the sole purpose of allowing him to continue in business without responsibility to his individual creditors and that the new corporation had succeeded to the business operated by defendant, including his principal customer, the garnishee, and, therefore, made a finding for plaintiff; it was Held that the judgment entered on the finding should be affirmed.
Before RHODES, P.J., HIRT, GUNTHER, WRIGHT, WOODSIDE, ERVIN, and WATKINS, JJ.
Appeal, No. 230, Oct. T., 1957, from judgment of Municipal Court of Philadelphia County, Dec. T., 1954, No. 270, in case of Nathan A. Satler, individually and trading as Penn Sales Company, v. Joseph P. Rice, individually and trading as Girard Floor Covering, et al. Judgment affirmed.
Proceedings upon attachment execution and upon petition of intervenor and rule to show cause why garnishee should not pay moneys to it. Before BURCH, J., without a jury.
Finding for plaintiff; petition of intervenor dismissed, and judgment entered on finding. Intervenor appealed.
Joseph Singer, for appellant.
L.J. Lichtenstein, with him Dennis, Lichtenstein, Cohen Dennis, for plaintiff, appellee.
Argued October 9, 1957.
The judgment of the court below is affirmed on the opinion of Judge BURCH, as reported in 9 Pa. D. C. 2d 741.