Bartle v. Home Owners Coop

309 N.Y. 103, 127 N.E.2d 832 (1955)

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Nature of the Case

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Facts

Bartle (P) is the trustee in bankruptcy of Westerlea Builders, Inc. a wholly owned subsidiary of Home Owners Coop (D). D formed Westerlea to undertake construction of veterans housing. At all times, the two companies maintained outward indicia of separate corporations. Westerlea proceeded with construction on some 26 houses but soon found itself in a difficult financial situation. Creditors took over the construction responsibilities. Four years later, Westerlea was adjudicated a bankrupt. D had contributed to Westerlea not only its original capital of $25,000 but additional sums amounting to $25,639.38. P contends that D should be liable for Westerlea’s contract debt. The trial court and the appeals court disagreed. P appealed.