Question: Russell Nugent was involved in the roofing business in Kansas

Russell Nugent was involved in the roofing business in Kansas City, incorporating his business as Russell Nugent Roofing, Inc. In 1985, the name was changed to On Top Roofing, Incorporated. On August 27, 1987, On Top, Inc., ceased to exist, and RNR, Inc., was incorporated. RNR, Inc., went out of business in 1988, and RLN Construction, Inc., was incorporated. In 1989, the business was organized as Russell Nugent, Inc. Nugent and his wife had been sole shareholders, officers, and directors of each corporation. When one roofing company was incorporated, the prior roofing company ceased doing business. All of the companies were located at the same business address and used the same telephone number. Nugent paid himself and his wife more than $100,000 in salaries in 1986. In 1986, the corporation paid $99,290 in rent for property that the Nugents owned. Nugent testified that he changed to a new corporation every time he needed to get a “fresh start.” The evidence showed that he used the On Top Roofing logo on his trucks and Yellow Pages advertisements throughout the period of the successive corporations. Suppliers who were not paid for materials in 1986 and 1987 by the insolvent corporations sought to pierce the corporate veils and hold Nugent personally liable. Nugent defended that as a shareholder, he had no personal liability. Decide. [K.C. Roofing Center v. On Top Roofing, Inc., 807 S.W.2d 545 (Mo. App.)]

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