Tigrett v. Pointer and Torregrossa v. Szelc

In Tigrett v. Pointer and Torregrossa v. Szelc, 580 S.W.2d 375, 378 (Tex. Civ. App.--Dallas 1978, writ ref'd n.r.e.), a garnishment proceeding, Tigrett, holder of a judgment against Heritage Building Company, sought to pierce the corporate veil and hold Pointer, the corporation's president and sole stockholder, personally liable for the debt. Tigrett alleged that Pointer used two companies as alter egos, and she introduced evidence that Pointer had made personal loans to the companies that amounted to more than 400 times the initial capitalization as well as other loans secured by the corporation's real estate holdings. In holding that the theory of alter ego had been proven as a matter of law, the court of appeals noted that "when a corporation transfers virtually all its assets to its controlling stockholder to repay his advances, without providing for other creditors, the court may consider the amount of the capital stock as compared with the funds that the stockholder has actually invested in the enterprise as one of the factors in determining whether his manipulation of the corporate form of business organization to serve his individual interests justifies imposition of personal liability." Id. at 399