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Meredith v. Thompson
312 Ga. App. 697
| Ga. Ct. App. | 2011
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Background

  • Residents sue William C. Meredith Company, Inc. and three affiliated individuals for allegedly tortious emissions and noxious odors affecting their properties, seeking injunctive relief and damages.
  • The corporation treats wooden poles with pentachlorophenol (penta) at an East Point facility; the EPA regulates penta, and the facility operates under an EPA-approved license in a light industrial zone since 1921.
  • Defendants named are Cleveland G. Meredith (shareholder and chairman), Scott Schneider (president), and Paul M. Castle (VP/general manager), whose roles involved marketing, logistics, and operations supervision respectively.
  • The trial court denied summary judgment against the individuals, based on a theory that mere corporate operation does not pierce the corporate veil and that there was no sworn evidence negating alleged acts.
  • On interlocutory appeal, the court held that the trial court erred by focusing on unsworn denials and clarified the standard for summary judgment; the case was vacated and remanded for further consideration consistent with the opinion.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether corporate officers can be personally liable for the corporation's torts Residents contend officers directed or participated in discharges and thus are personally liable. Officers are shielded by corporate separateness unless they personally directed or participated in the torts. Denial vacated; remanded for consideration of remaining theories.
What is the proper summary judgment standard and burden-shifting for officers Any genuine issue should go to trial; plaintiffs may rely on allegations if uncontradicted. Defendants may rely on absence of proof by plaintiffs and need not negate every element with sworn proof. The court affirmed that a moving party may rely on absence of evidence and vacated the denial to allow proper application of the standard.
Which theories of recovery remain viable against the officers Nuisance, nuisance per accidens, trespass, and negligence support personal liability. Only the asserted theories are viable, and the defendants acted within corporate capacity with lawful operations. Remanded to determine viable theories and whether any theories support personal liability.

Key Cases Cited

  • Lau's Corp. v. Haskins, 261 Ga. 491 (1991) (absent proof by plaintiff; lack of evidence can support summary judgment)
  • Cowart v. Widener, 287 Ga. 622 (2010) (summary judgment standard; movant may rely on record evidence of absence of essential element)
  • Earnest v. Merck, 183 Ga. App. 271 (1987) (mere operation of corporate business does not render officers personally liable)
  • Kilsheimer v. State, 250 Ga. 549 (1983) (corporation has separate existence from officers; piercing veil requires persuasive reason)
  • Galaxy Carpet Mills v. Massengill, 255 Ga. 360 (1986) (lawful business in residential area may become nuisance per accidens)
Read the full case

Case Details

Case Name: Meredith v. Thompson
Court Name: Court of Appeals of Georgia
Date Published: Nov 18, 2011
Citation: 312 Ga. App. 697
Docket Number: A11A1053
Court Abbreviation: Ga. Ct. App.