The plaintiff lender brought a motion for summary judgment to recover loan funds advanced to a corporation controlled by the individual defendant.
The individual defendant admitted in criminal proceedings that he misused the loan funds and arranged the murder of the lender’s principal when he could not repay the debt.
The court found there was no genuine issue requiring a trial and granted judgment for the outstanding loan amount.
The court pierced the corporate veil, finding the corporation and the individual defendant were interchangeable for purposes of the loan and that the corporation functioned as a façade for improper conduct.
Punitive damages were refused because the action was grounded in breach of contract and no independent actionable wrong associated with the breach justified such damages.
