303 F. Supp. 3d 1282
M.D. Fla.2018Background
- Plaintiff Shirley Johnson sued for malicious prosecution after Paula White Ministries (PWM) earlier filed and then dismissed a copyright suit against her; Judge Presnell dismissed PWM's suit with prejudice and invited a separate malicious-prosecution claim.
- Johnson later amended to add Resurrection Life THC, Inc. (RLTHC) as an alleged sham corporation/alter ego of New Destiny Christian Center, Inc. (NDCC) to pierce the corporate veil and recover from RLTHC.
- Discovery disputes over financial records led to default judgment against White, NDCC, and PMMI for willful noncompliance; RLTHC remained as the only defendant not defaulted.
- RLTHC was incorporated December 2015, had no operations, employees, bank accounts, assets, transfers, or income, and was administratively dissolved in 2016.
- Plaintiff argues RLTHC was formed to shield NDCC/PWM assets after service of process; defendants counter that RLTHC never operated and was intended as a title-holding entity.
- The court granted RLTHC’s summary-judgment motion and denied Plaintiff’s partial summary judgment on veil-piercing, concluding Plaintiff failed to present evidence of deliberate misuse or fraud necessary to pierce the corporate veil.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether RLTHC's corporate veil can be pierced (alter-ego/sham-corporation) | RLTHC was formed shortly after service to hide assets and shield NDCC/PWM from liability | RLTHC never operated, had no assets or transfers, and was formed for legitimate title-holding purposes | Denied for Plaintiff; RLTHC judgment for defendant — veil not pierced |
| Whether timing of incorporation (proximate to service) proves fraudulent intent | Formation date shows intent to frustrate plaintiff's recovery | Timing alone is insufficient and record shows legitimate purpose; dates contested | Timing alone insufficient; no evidence of fraudulent purpose |
| Whether absence of corporate formalities/overlap with NDCC supports alter-ego finding | Shared address and lack of activity indicate sham | Lack of activity undermines theory that assets were transferred to RLTHC; no evidence of domination used to defraud creditors | Absence of operations and transfers defeats plaintiff’s claim; no deliberate misconduct shown |
| Whether plaintiff met burden on summary judgment to show deliberate misuse of corporate form | Plaintiff relied on circumstantial facts and timing to meet burden | Defendant showed absence of evidence of misuse; moved for summary judgment | Plaintiff failed to produce affirmative evidence; defendant entitled to summary judgment |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden-shifting framework)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (genuine-dispute standard for summary judgment)
- Dania Jai-Alai Palace, Inc. v. Sykes, 450 So.2d 1114 (Fla. 1984) (corporate veil pierced only for fraud or to mislead creditors)
- In re Hillsborough Holdings Corp., 166 B.R. 461 (Bankr. M.D. Fla. 1994) (heavy burden to pierce veil; requires persuasive proof of shareholder misconduct)
- Bookworld Trade Inc. v. Daughters of St. Paul, Inc., 532 F. Supp. 2d 1350 (M.D. Fla. 2007) (unsupported allegations insufficient to pierce veil where no evidence of transfers to defraud creditors)
- Porter v. Ray, 461 F.3d 1315 (11th Cir. 2006) (nonmovant must present affirmative evidence to show genuine factual dispute)
- U.S. v. Four Parcels of Real Prop. in Greene & Tuscaloosa Ctys., 941 F.2d 1428 (11th Cir. 1991) (movant may point to absence of evidence or produce affirmative evidence on summary judgment)