Opinion ID: 1676519
Heading Depth: 1
Heading Rank: 3

Heading: Remand Unnecessary

Text: Here, both parties submitted motions for summary judgment. The circuit judge determined that the purported sale of N.W. was a sham for regulatory purposes and that the sale subverted public policy. The Court of Appeals directed a remand based on its observation that the parties disagreed as to who controlled N.W. at the time the final orders were entered. This lawsuit is not between the parties of Neace and Gulf, but rather between the Cabinet and Neace. The body of law relating to the application of Rule 56.03, et seq., as to summary judgment has been collected in Steelvest, Inc. v. Scansteel Service Center, Inc., Ky., 807 S.W.2d 476 (1991). The Kentucky standards for summary judgment were ably expressed in Paintsville Hospital Co. v. Rose, Ky., 683 S.W.2d 255 (1985). The basic grounds remain the same. Summary judgment will apply if 1) there is no genuine issue as to any material fact, and 2) the moving party is entitled to judgment as a matter of law. Such a procedure is not a substitute for trial, but the circuit judge is required to examine the evidentiary material, not to decide any issue of fact, but to discover if a real issue exists. All doubts must be resolved in favor of the party opposing the motion. Here, the dispute was between the Cabinet and Neace. There is no genuine issue of any kind here. The record provides overwhelming evidence that Neace was individually liable pursuant to the statute. He was the sole officer, director and shareholder of the corporation. He had notice of unabated violations and the orders of the Cabinet. He took no steps to see that the corporation complied with the orders. Neace had even signed a permit revision as President of N.W. in September of 1989, six months after the alleged sale. The circuit judge reviewed the administrative record and took additional proof regarding the question of individual liability. The circuit judge gave Neace every opportunity to respond to the allegations of the Cabinet. Consequently, based on the record and the law, it is clear that Neace should be held alternatively liable under KRS 350.990(9) in view of his complicity in the failure of the corporation to comply with the orders of the Cabinet. See Triple M Mining, supra , and Williams, supra . The remand directed by the Court of Appeals is unnecessary. An appellate court may affirm a trial court under an alternate theory not relied upon by the trial court. Cf. Haddad v. Louisville Gas & Electric Co., Ky., 449 S.W.2d 916 (1970). KRS 350.135 requires Cabinet approval of permit transfers by sale. KRS 350.990(9) does not supersede the common law remedy of corporate veil piercing. Both provide an adequate basis for the imposition of individual liability. We conclude that the circuit court was correct in holding that Neace controlled N.W. at all times and thereby subverted public policy by his conduct.