Opinion ID: 514758
Heading Depth: 3
Heading Rank: 1

Heading: Central Liquor Loan Transactions

Text: 5 The Sacks contend that Rothberg defaulted under paragraph 14 of the Settlement Agreement when Central Liquor encumbered its property to obtain various loans between 1984 and 1986. The District Court rightly rejected this contention. The language of paragraph 14 expressly refers to Rothberg's personal assets only: (a) his interest in Central Liquor Store, Inc., (b) his interest in any commercial or investment real estate wherever located, or (c) any financial instruments in his ownership.... Settlement Agreement, p 14 (emphasis added). Since the construction of unambiguous contractual language is a matter of law entrusted to the court, see Horn & Hardart Co. v. Nat. R.R. Passenger Corp., 793 F.2d 356, 359 (D.C.Cir.1986), we need pause only momentarily in upholding the District Court's reading of this clear language. Thus, as the Sacks appear to recognize in their briefs before us, the Central Liquor loan transactions can only be considered to have been in breach of the Settlement Agreement if we disregard Central Liquor's corporate form and attribute its assets to Rothberg. 6 It is, of course, hornbook law that a duly-formed corporation enjoys a separate legal existence from its shareholders and that shareholders have no specific interest in corporate property. See Office of People's Counsel v. Public Service Comm'n, 520 A.2d 677, 682 (D.C.App.1987). Thus, even if stock ownership is concentrated in the hands of one person, it does not alter the fact that title to the corporate property is vested in the corporation and not in the owner of its stock. Id. 7 In keeping with these principles, piercing the corporate veil represents an extraordinary remedy justified only by an affirmative showing of unity of interest and abuse of the corporate form. See Schattner v. Girard, Inc., 668 F.2d 1366, 1370 (D.C.Cir.1981); Vuitch v. Furr, 482 A.2d 811, 815 (D.C.1984). The Sacks have fallen far short of making out an affirmative case in this respect so as to withstand a well-founded motion for summary judgment. See Celotex Corp. v. Catrett, 477 U.S. 317, 322, 23 (1986). They have provided no evidence of any substance indicating a substantial disregard of the formalities of the corporate form, extensive commingling of personal and corporate funds, or the fraudulent use of the corporate form to perpetrate a wrong. Vuitch v. Furr, 482 A.2d at 816. 1 The loan transactions were entered into by Central Liquor Store, Inc., a corporation in which Rothberg maintained only a 50 percent interest. There is no evidence that Rothberg's sister, who owned the other 50 percent share, was not personally and substantially involved in the management and guidance of the corporation. Cf. Joint Appendix at 78-82 (deposition of Miriam Alpern); Joint Appendix at 154-55 (minutes of March 30, 1984 meeting of Central Liquor Store, Inc.). Absent any compelling evidence that Rothberg treated Central Liquor as his alter ego, see supra n. 1, the District Court properly declined to attribute the actions of the corporation to him. 8