The plaintiff franchisor contracted with the corporate defendant to manage and pay utility bills for its stores.
Upon terminating the contract, the plaintiff transferred over $1.3 million to the corporate defendant to pay outstanding bills.
The corporate defendant misappropriated the funds, transferring them to its operating account instead of paying the utilities, and subsequently signed a mutual release without disclosing the misappropriation.
The plaintiff brought a motion for summary judgment for the return of the funds, and the personal defendant moved to dismiss the claims against him.
The court granted summary judgment against the corporate defendant, finding it was unjustly enriched and that the mutual release was vitiated by fraudulent misrepresentation.
However, the court dismissed the claims against the personal defendant, finding no basis to pierce the corporate veil.
