Opinion ID: 2075077
Heading Depth: 1
Heading Rank: 4

Heading: Claim against A-W Brands

Text: Parrillo claims that the trial justice erred when he dismissed all claims against A-W Brands because of a lack of evidence connecting the parent company with the transactions giving rise to this litigation. Although it is not disputed that A-W Brands is the parent company of Giroux, there was no evidence adduced at trial which suggested that it dominated the finances, policies, and practices of Giroux; and absent such proof, courts will generally respect the independent character of each corporation. See e.g. Team Central, Inc. v. Teamco, Inc., 271 N.W.2d 914 (Iowa 1978); Gentry v. Credit Plan Corp. of Houston, 528 S.W.2d 571 (Tex. 1975). The mere fact that there exists a parent-subsidiary relationship between the two corporations is insufficient cause to impose liability on the parent for the torts of the subsidiary. Zaist v. Olson, 154 Conn. 563, 227 A.2d 552 (1967); McCarthy v. Ference, 358 Pa. 485, 58 A.2d 49 (1948). See also 10 Fletcher Cyc. Corp. § 4878 (perm. ed. 1978). The plaintiff's appeal is denied in part and sustained in part, so much of the judgment as relates to the grant of Giroux's motion for a directed verdict on the res ipsa count is vacated, and the case is remanded to the Superior Court for further proceedings. SHEA, J., did not participate.