Date: 03-25-2005

Case Style: Jerry and Pat Statham v. Billy Ellis, Inc. and Billy Ellis Individually

Case Number: CJ-2002-02743

Judge: Doris Fransein

Court: District Court, Tulsa County, Oklahoma

Plaintiff's Attorney:

A. Scott McDaniel and Nicole M. Longwell of Joyce, Paul & McDaniel, P.C., Tulsa, Oklahoma

Defendant's Attorney:

Michael Woodward of Woodward, Woodward & Smolen, Tulsa, Oklahoma

Description:

Claims stemmed from a contract for the replacement of a residential roof. Plaintiffs claimed that the corporate defendant breached the contract and was negligent in failing to protect the residence during the project and by failing to properly install the roof, which resulted in serious structural and mold damage to the residence. Plaintiffs also alleged that the defendants were guilty of fraud through false representations as to insurance in force and financial solvency. Plaintiffs asserted that the individual defendant, as the sole shareholder of the Texas coroporation, was individually liable for the acts of the foreign corporation as a result of the corporation's failure to register with the Secretary of State and failure to pay corporate franchise taxes to Oklahoma.

Outcome: Court directed a verdict of liability against the individual defendant, holding him personally liable for any verdict rendered against the corporate defendant. Jury verdict for Plaintiffs against the corporation for breach of contract, negligence and fraud, actual damages - $80,000.00. The jury found the defendants guilty of reckless conduct, and awarded exemplary damages in the amount of $80,000.00

Plaintiff's Experts:

Mike Sisemore, Salina, Oklahoma, real estate appraiser; Burns and McDonald, Kansas City, Missouri; Ed Owen, Tulsa, Oklahoma

Defendant's Experts:

Alan Locke, Tulsa, Oklahoma

Comments: Reported by Scott McDaniel