Prudential Mutual Aid Society v. Cromleigh

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• denying re-characterization claim where creditor dealing with newly-formed undercapi-talized corporation was aware of its precarious situation and was not deceived
• fair inference is that salaried employee of corporation knew worthlessness of corporation when he entered into contract for salary
• in determining whether to respect the corporate form, one factor is whether the capital is “illusory or trifling compared with the business to be done”
• equitable doctrine of corporate disregard exercised “only for the defeat of fraud or wrong, or the remedying of injustice”
• “The right and the duty of courts to look beyond the corporate forms are exercised only for the defeat of fraud or wrong, or the remedying of injustice”
• “The fair inference is that [Plaintiff] knew the worthlessness of the corporation with which he contracted, and knew that his contract was of no value unless the corporation could borrow money.”

Source: CourtListener parenthetical corpus (CC0).