Clint and Carlina open their business and find a cream cheese supplier, Jackson Dairy, Inc. Their relationship with Jackson Dairy, Inc. is great at first; the cream cheese is of good quality and is delivered according to their contract. However, after a few months, Jackson Dairy, Inc. starts providing deliveries later and later and is eventually unable to deliver any cream cheese at all. Unfortunately, Clint and Carlina have already paid Jackson Dairy, Inc. for the cream cheese that has not been delivered.

Jackson Dairy, Inc. is incorporated as a C corporation with Jack Jackson and his wife as the sole shareholders and the directors and officers of the corporation. Jack and his wife have held two annual meetings over the last eight years and do not keep current minutes for the corporation. Jackson Dairy, Inc.’s bank account rarely has a positive balance, most of the corporation’s expenses are paid from Jack and his wife’s personal bank account, and the corporation owns no assets because all assets are held in Jack and his wife's names.

Clint and Carlina file a lawsuit for breach of contract against Jackson Dairy, Inc., and against Jack Jackson and his wife as individuals. In terms of liability for business owners, do you think Clint and Carlina will be successful holding Jack Jackson and his wife personally liable? Why or why not?