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Associated Distributors, Inc. v. McBee
Citations: 140 Ga. App. 433; 231 S.E.2d 449; 1976 Ga. App. LEXIS 1510Docket: 53033
Court: Court of Appeals of Georgia; November 12, 1976; Georgia; State Appellate Court
Plaintiff appealed a bench trial judgment favoring defendant Northcutt, related to a claim against directors and officers of Apple, Inc. for merchandise used in house construction on lots purchased by Northcutt and McBee. McBee is excluded from this appeal due to bankruptcy. The plaintiff argues that the trial court erred by not recognizing two critical issues: (1) that the corporation acted as a "mere conduit" for the defendants' personal dealings, allowing fraud to persist under the corporate veil, and (2) that the defendants utilized corporate assets while the corporation was insolvent to secure personal advantages. The trial court acknowledged the "mere conduit" argument but found that the plaintiff was aware of the corporate structure, had extended credit in Apple, Inc.'s name, and relied solely on McBee's personal guarantee. The appellate court, adhering to established precedents, affirmed that it will not interfere with factual findings supported by evidence, nor retry factual issues, focusing instead on legal errors. The review confirmed that the trial court adequately addressed the presented issues and that evidence supported its findings. Consequently, the appellate court found no legal or factual errors and upheld the judgment for the defendant. Judgment affirmed, with judges Bell and Stolz concurring.