Opinion ID: 2166290
Heading Depth: 1
Heading Rank: 5

Heading: current action

Text: On February 22, 2005, Ichtertz commenced the current action against Bainbridge and the corporation (hereinafter collectively the defendants), claiming that the corporation had failed to pay the judgment and that Bainbridge, as sole shareholder and officer of the corporation, controlled the actions of the corporation. Ichtertz asked that the corporate entity be disregarded, the corporate veil be pierced, and Bainbridge be held personally liable for the judgment. Ichtertz alleged that (1) the corporation was grossly and inadequately capitalized; (2) Bainbridge, as shareholder and director, had diverted corporate funds or assets to his own improper use; (3) the corporation was a sham and a façade for Bainbridge's personal dealings, and the operations of the corporation were carried out by Bainbridge in disregard of the corporate entity; (4) Bainbridge withdrew assets from the corporation without leaving sufficient assets for the corporation to pay its debts, including the judgment owed to Ichtertz; and (6) the corporate entity should be disregarded to prevent fraud or injustice to Ichtertz. The defendants moved to dismiss pursuant to rule 12(b)(6). The motion alleged that the complaint failed to state a claim upon which relief could be granted. There were no other allegations upon which the motion was based. At a hearing on the motion, the defendants offered, and the court received, certain evidence from the previous case: excerpts from the trial testimony and argument made during the course of the previous trial, the third amended petition from the previous action, and excerpts from the deposition of Ichtertz taken in the previous action. The defendants argued to the district court that the request to pierce the corporate veil was barred by an order in the previous action which granted a directed verdict for Bainbridge personally and dismissed him from that action. In its order sustaining the defendants' motion to dismiss, the district court found that Ichtertz had filed an earlier lawsuit against the defendants in the district court for Hall County. At the close of Ichtertz' evidence in the previous action, the court had sustained a motion for directed verdict which dismissed Bainbridge individually from the suit. The jury subsequently returned a verdict against the corporation for $633,867. The district court noted that in the present case, Ichtertz claimed the corporate veil should be pierced and Bainbridge should be held personally liable for the judgment rendered in the previous case. In the current action, the court concluded that there was insufficient evidence in the previous case to hold Bainbridge personally liable for any claims by Ichtertz and that the claims in the current action were identical to those on which a jury had rendered judgment. Relying on the doctrine of res judicata, the court sustained the defendants' motion to dismiss. Ichtertz appealed.