Scribner Grain & Lumber Co. v. Gerald D. - Supreme Court of Nebraska

Scribner Grain & Lumber Co. v. Gerald D.

By Supreme Court of Nebraska

  • Release Date: 1979-07-17
  • Genre: Law
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Scribner Grain & Lumber Co. v. Gerald D. by Supreme Court of Nebraska epub - ebook - audiobook

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This is an action in equity brought before the District Court for Cuming County, Nebraska, by Scribner Grain & Lumber Co., a Nebraska corporation, against Gerald D. Wortman, the principal stockholder and managing officer of a closed corporation, seeking to enforce the debt of the corporation against the individual stockholder and managing officer, Gerald D. Wortman. From a judgment in favor of the plaintiff, the defendant, Gerald D. Wortman, has appealed. We affirm. The facts briefly stated are that Gerald D. Wortman had operated a commercial feedlot in Cuming County, Nebraska, for several years prior to 1974, known as Sandhill Feedlots. During 1973 the defendant, Gerald D. Wortman, formed a corporation under the name of Sandhill Feedlots, Inc., and there appears to be no question that the same was duly incorporated as by law provided. Beginning on January 1, 1974, the property of the former feedlot, operated as a sole proprietorship, was transferred to the corporation and stock issued. The business of the corporation was financed by the Production Credit Association office at Tekamah, Nebraska, and a statement of these transactions are in the record. The plaintiff continued to do business with the new corporation in the same manner as it had before, periodically delivering feed to the feedlot and billing for the balance at the end of each month. During 1974 the plaintiff was paid in February, March, twice in April, again in May, July, August, and September, for the deliveries made during those months, by drafts drawn by the corporation, Sandhill Feedlots, Inc., upon the Production Credit Association. The payment by draft received by the plaintiff on August 17, 1974, was in the amount of $10,861.45 and was $2,500 in excess of the amount billed by plaintiff. The defendant, Gerald D. Wortman, requested a check from plaintiff repaying to him, individually, the amount of the excess and it was given him. Again in September a draft was delivered for $15,656.22, which was $4,000 in excess of the billing. And again, Wortman requested and was given a check on the plaintiff for the amount of the excess. The October 1974 billing was never paid and the plaintiff thereafter brought suit against Sandhill Feedlots, Inc., and recovered judgment in the sum of $13,022.89 on July 3, 1975, in the District Court for Cuming County, Nebraska. It is this judgment which is the subject of the present litigation. After execution had issued against the corporation and was returned unsatisfied, because all the assets of the corporation had been depleted, this action was brought against the principal shareholder and managing officer of the corporation, Gerald D. Wortman, alleging that said stockholder had appropriated and used corporate funds and property for his personal purposes and thereby defrauded and caused damage to the plaintiff as a creditor of the corporation. The court was asked to render judgment against the defendant individually for the corporate debt.

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