Court Opinion

ID: 9544584
Source: CourtListenerOpinion
Date Created: 2023-08-07 16:57:17.768456+00
Date Added: 2024-06-11T15:13:14.476268
License: Public Domain

BISTLINE, Justice,
dissenting.
Appellant Pierson lists four issues on this appeal, of which I discuss only the second, believing it well taken. With no other member of the Court appearing to consider my view, it would serve no purpose to write upon the other issues.
The second issue raised by Pierson is “[w]hether Master Sheet Metal was the alter ego of Gail Jones so that Mr. Pierson may hold him individually liable for Master Sheet Metal’s debts?” Pierson’s complaint contained the following:
“12. At all times relevant hereto, Master Sheet Metal, Inc., was the alter ego of defendant and defendant used said corporation for the sole purpose of transacting his individual business under a corporate guise. Said corporation does not have any genuine or separate corporate existence, there being such a unity of interest and ownership between defendant and Master Sheet Metal, Inc., that the separate personalities of the corporation and defendant do not exist. This allegation that Master Sheet Metal, Inc., is the alter ego of defendant is supported by the following facts, among others:
“(a) The corporation is inadequately capitalized.
*86“(b) Defendant has treated the assets of the corporation as his own.
“(c) Defendant has given plaintiff assurance that the amounts owing to plaintiff would be paid out of defendant’s individual property.
“(d) Defendant has conducted business without regard to corporate procedures and formalities.
“(e) Defendant is the sole stockholder, director, and officer of Master Sheet Metal, Inc., and said corporation is in effect a ‘one-man show’.”
Appellant in his brief points out by detailed references to the transcript that these allegations were supported at the trial. The only statement by the trial court on this issue was “[t]he facts disclosed by the evidence do not, as a matter of law, justify piercing the corporate veil.” This conclusion is upheld by the Court on appeal by the equally conclusory statement that “[w]e find ample, substantial and competent evidence to support those findings' upon which the trial court based its conclusion.” It is a case of an appellate conclusion upholding a trial court conclusion. The trial court never made any factual findings on the question of whether Jones treated the corporation as his alter ego.1
It is a well settled principle of this Court that a court sitting without a jury must make findings of fact and conclusions of law on the issues before it. Morris v. Frandsen, 101 Idaho 778, 621 P.2d 394 (1980); Stecklein v. Montgomery, 98 Idaho 671, 570 P.2d 1359 (1977); I.R.C.P. 52(a). Here the trial court made no findings of fact on this issue, and appellant’s brief elaborately points out that such a question of fact did exist. It is not the role of this Court, or any member thereof, however, to review the record and make independent findings of fact. That is a matter for the trial court. This Court is not in a position to review the trial court’s conclusion of law where there are no factual findings on which that conclusion was based.2
In Stecklein v. Montgomery, supra, this Court reversed for a new trial where there were no specific findings of fact on issues raised, in spite of the fact that in that case the issue of a lack of findings was not raised on appeal. No less is required in this case, although I submit that the better procedure is as I outlined in Stecklein v. Montgomery, supra at 675, 570 P.2d at 1363 (Bistline, J., dissenting).

. The only findings which could possibly be said to bear on this issue are that “the accounting procedures were in accord with accepted accounting practices for small corporations” and that the legal work was done by a qualified attorney. These findings do not address the allegations that Jones used the corporation as his alter ego.
As to the issue of undercapitalization, the issue is not whether the corporation was initially undercapitalized, but whether Jones drained the corporate assets for his own use. Although perhaps not properly phrased by Pierson, the intent of his argument is obvious. The court made no finding on this issue.

. Pierson moved to amend the findings to include such findings, but the court denied the motion.