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Miller v. Harco Nat'l Ins. Co.

In the rare case where a corporation is the alter ego of its controlling shareholder, the corporation should be considered as a named insured on the shareholder's motor carrier insurance.

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Byron Miller was involved in a collision in Michigan, caused by a truck which displayed the name “Shippers Services Express, Norcross, GA.” Miller and his wife Plaintiffs brought suit in Michigan to recover for the injuries sustained in this collision, and obtained a default judgment against Shippers Services Express. Plaintiffs subsequently filed this action in the United States District Court for the Northern District of Georgia against the following: Shippers Services Express, Inc. Corporation; its sole shareholder, Galo Moya; Galo Moya d/b/a Shippers Services Express Sole Proprietorship; and, Harco National Insurance Company Harco, an insurer that had issued a motor carrier policy in which the only named insured was the Sole Proprietorship.

On cross-motions for summary judgment, the district court concluded that, despite a partial misnomer in the Michigan complaint, the default judgment was enforceable against the Corporation under Michigan law. The district court also pierced the corporate veil based upon the alter ego theory, and ruled that the Michigan judgment was enforceable against Moya and the Sole Proprietorship. The district court further found that the Michigan court had personal jurisdiction over Moya and that the Michigan judgment was entitled to full faith and credit. For these reasons, the district court granted summary judgment in favor of Plaintiffs and against the Corporation, Moya, and the Sole Proprietorship.

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