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