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Goad v. L & W Supply Corp.

Court of Appeals of Georgia
Feb 25, 1977
233 S.E.2d 503 (Ga. Ct. App. 1977)

Opinion

53464.

SUBMITTED FEBRUARY 4, 1977.

DECIDED FEBRUARY 25, 1977.

Action on account. Cobb State Court. Before Judge Robinson.

Flournoy Still, Richard H. Still, for appellant.

David U. Crosby, for appellee.


The appellee sued the appellant on open account for $8,730.53, the amount owing on building supplies. The appellant did not contest the amount of the debt, but claimed that it was owed by his corporation and not by the appellant, Roger Goad, as an individual. The jury returned a verdict in the appellee's favor for $2,569.89. A judgment notwithstanding the verdict was rendered for the full amount of the debt, $8,730.53, plus interest, and the appellant appeals.

The appellee is a supplier of building materials. The appellant, Roger Goad, is a drywall contractor. In April, 1973, Mr. Goad opened an account with the appellee, and they did an active trade for over a year.

On April 1, 1974, Goad Drywall, Inc. was formed. There is evidence that the appellee learned of this incorporation as soon as early May, 1974 and that after his incorporation Mr. Goad paid all of his debts to the appellee by company check. However, it is uncontested that Mr. Goad never requested that his account be changed from an individual to a corporate account. All invoices were made to Mr. Goad as an individual. Never did Mr. Goad complain that the bills or invoices were incorrect.

In July, 1974, with the advent of hard times in the building community, the appellee ceased dealing with Mr. Goad on a credit basis. Suit was later brought for the $8,730.53 due on Mr. Goad's account. The sole question for jury consideration was whether the debt was owed by Mr. Goad or by his corporation. A jury verdict was returned for $2,569.89, the jury apparently believing that Mr. Goad owed part of the debt and that the corporation owed the remainder. A judgment notwithstanding the verdict was entered for the full amount due and owing.

We must affirm the judgment of the court below. There is no evidence from which a jury could conclude that Goad Drywall, Inc., owed anything to the appellee. Simply because Mr. Goad formed a corporation, it was not required that all businesses would automatically cease to deal with Mr. Goad as an individual and begin to deal instead with the corporation. All of the evidence indicates that the appellee intended at all times to deal with Mr. Goad as an individual — not with his limited liability company. In fact, the appellee's unrebutted testimony shows that if Mr. Goad had requested to transfer his account to the corporation, the appellee's credit policy would have required Mr. Goad personally to guarantee his company's debts. Thus, the trial judge did not err in granting a judgment n.o.v. See Ross v. Hall County Bd. of Commissioners, 235 Ga. 309 ( 219 S.E.2d 380) (1975); Interstate Life c. Co. v. Upshaw, 134 Ga. App. 394 ( 214 S.E.2d 675) (1975); Chrysler Corp. v. Wilson Plumbing Co., 132 Ga. App. 435 (5) ( 208 S.E.2d 321) (1974).

Judgment affirmed. Quillian, P. J., and Shulman, J., concur.

SUBMITTED FEBRUARY 4, 1977 — DECIDED FEBRUARY 25, 1977.


Summaries of

Goad v. L & W Supply Corp.

Court of Appeals of Georgia
Feb 25, 1977
233 S.E.2d 503 (Ga. Ct. App. 1977)
Case details for

Goad v. L & W Supply Corp.

Case Details

Full title:GOAD v. L W SUPPLY CORPORATION

Court:Court of Appeals of Georgia

Date published: Feb 25, 1977

Citations

233 S.E.2d 503 (Ga. Ct. App. 1977)
233 S.E.2d 503