F&M MARKETING SERVICES, INC. v. CHRISTENBERRY TRUCKING AND FARM, INC. ET AL. - Articles

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Posted by: Tanja Trezise on Jan 31, 2017

Court: TN Court of Appeals

Attorneys 1:

Christopher J. Oldham, Knoxville, Tennessee, for the appellant, F&M Marketing Services, Inc.

Attorneys 2:

John T. McArthur, Melanie E. Davis, and Carlos A. Yunsan, Maryville, Tennessee, for the appellees, Christenberry Trucking and Farm, Inc., and Clayton V. Christenberry, Jr.

Judge(s): SUSANO

The question presented is whether the corporate veil of Christenberry Trucking and Farm, Inc. (CTF), should be pierced and its sole shareholder, Clayton V. Christenberry, Jr., be held personally liable for a debt owed by CTF to F&M Marketing Services, Inc. In 2012, F&M obtained a judgment against CTF for breach of contract. By that time, CTF, a trucking company, had suffered mortal setbacks primarily owing to the great recession. CTF was administratively dissolved that same year. CTF had no assets to satisfy the judgment. F&M brought this action, seeking to hold Mr. Christenberry personally liable for the debt. After a bench trial, the court held that F&M did not meet its burden of proving that CTF’s corporate veil should be pierced. F&M appeals. We affirm the trial court’s judgment.