Opinion ID: 1168278
Heading Depth: 1
Heading Rank: 3

Heading: The Liability of the DeLillos

Text: The district court additionally found that Vincent DeLillo and Andrew DeLillo, Sr., individually, were jointly and severally liable with Trident for $38,541.25, plus interest. The DeLillos contend that the district court erred in so finding. According to the DeLillos, the district court did not set forth any facts in its findings of fact and conclusions of law supporting its determination that the DeLillos personally guaranteed a corporate debt of AVA. Extension of personal liability to Vincent DeLillo is based on his signature appearing on the settlement agreement, without reference to his corporate capacity. Consequently, we must decide whether Vincent DeLillo's signature, without a statement acknowledging that he was acting for the corporation, is sufficient evidence to support a finding of personal guaranty for the debts of AVA. Failure of the officer signing a contract to add their title of office is not ordinarily fatal to the validity of a corporate contract. Kenneally v. First National Bank of Anoka, 400 F.2d 838, 841 (8th Cir.1968) (the omission of the signer's title will not affect the validity of the instrument where it is clear the instrument was signed in an official capacity), cert. denied, 393 U.S. 1063, 89 S.Ct. 716, 21 L.Ed.2d 706 (1969). Where the contract on its face is a contract of the corporation and the other parties have notice of the officer's relation to the corporation, the contract will be upheld. Gulf & Basco Co. v. Buchanan, 707 S.W.2d 655 (Tex. Ct. App. 1986). [1] If the intent to make a corporate contract appears from the acts of the parties and the entire circumstances taken together with the subject matter of the deal, a corporate officer signing in his individual name only does not necessarily show that the person was acting in other than his official capacity for the corporation. 7 Fletcher, Cyclopedia of the Law of Private Corporations § 3035 (1988). In Rowland v. Lepire, 99 Nev. 308, 662 P.2d 1332 (1983), this court enunciated the standard of proof for showing alter ego based on an allegation of undercapitalization. [I]t is incumbent upon the one seeking to pierce the corporate veil, to show by a preponderance of the evidence, that the financial setup of the corporation is only a sham and caused an injustice. Id. at 317, 662 P.2d at 1337. By analogous reasoning, we believe it is incumbent upon the one seeking to extend personal liability to an officer of a corporation for a corporate debt, to show by a preponderance of the evidence, that the officer intended to be personally bound, and that the creditor was looking to the officer as the guarantor of the debt. The agreement bearing Vincent DeLillo's signature was on Polynesian Hotel letterhead. The language of the settlement agreement expressly obligated the Polynesian Hotel. It is clear from his testimony that Mr. West was looking to AVA for payment, and not to the DeLillos personally. Additionally, respondent did not offer proof that AVA was not a valid corporation. The record is not clear upon what other evidence, if any, the district court relied when assessing personal liability. Facts supporting findings may not be implied when the record is unclear as to what those facts were. Pease v. Taylor, 86 Nev. 195, 467 P.2d 109 (1970). Findings of fact can only be set aside when they are clearly erroneous, and not supported by substantial evidence. Pandelis Constr. Co. v. Jones-Viking Assoc., 103 Nev. 129, 734 P.2d 1236 (1987). Vincent DeLillo's failure to indicate his corporate capacity is not substantial evidence demonstrating his intent to be personally liable. Accordingly, we reverse the district court's finding that extended personal liability to Vincent DeLillo for the corporate debt of AVA. Andrew DeLillo, Sr.'s only association with this case was found in the complaint, where he was named individually, and doing business as AVA. The record does not mention Andrew DeLillo, Sr. in any meaningful context. Respondent presented no evidence showing Andrew's relationship to AVA, nor did respondent present any evidence showing that AVA was not a valid corporation. No documents were presented bearing his signature. Consequently, this court is not faced with whether there was substantial evidence to support the judgment, but rather whether the judgment was supported by any evidence at all. We conclude that it was not, and therefore, the judgment is clearly erroneous. Pandelis Constr. Co., 103 Nev. 129, 734 P.2d 1236. Accordingly, we reverse the district court's finding that Andrew DeLillo, Sr. was personally liable for the corporate debts of AVA.