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AFX Corp. - Anita Backlund/MN
1/28/2008 11:16:46 PM (2941 views)
Re: AFX Corp. - STEVE MEINECKE/TN
1/28/2008 11:57:12 PM (2876 views)
Re: AFX Corp. - ks/IN
1/29/2008 8:48:29 AM (3206 views)
Re: AFX Corp. - Jessica Talley/NJ
1/29/2008 1:40:45 PM (3109 views)
Re: AFX Corp. - Anita Backlund/MN
1/29/2008 10:22:45 PM (3156 views)
Re: AFX Corp. - ANTHONY MUZIO/NY
1/30/2008 7:26:12 PM (3162 views)
Re: AFX Corp. - Vincent Hanna/VA
1/31/2008 12:17:23 PM (3099 views)
Re: AFX Corp. - Anita Backlund/MN
2/8/2008 11:19:26 PM (2969 views)

Payment from Richmond Title - Jeff Troutman/TN
1/28/2008 7:38:11 AM (3047 views)
Re: Payment from Richmond Title - Jessica Talley/NJ
1/28/2008 8:12:24 PM (2971 views)
Re: Payment from Richmond Title - Barbara Bennett/IN
1/28/2008 8:39:35 PM (3042 views)
Re: Payment from Richmond Title - Vikki Moffitt/GA
1/29/2008 8:31:24 AM (3051 views)
Re: Payment from Richmond Title - martha campbell/VA
2/4/2008 7:57:57 AM (2989 views)
Re: Payment from Richmond Title - Michaela Urban/OH
3/5/2008 5:44:25 PM (3090 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
3/14/2008 12:35:52 AM (2671 views)
Re: Payment from Richmond Title - Jean Allen/NC
4/1/2008 8:52:14 AM (2571 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
5/9/2008 4:33:29 PM (2421 views)

Goverment Lien - Howard Demps/FL
1/27/2008 8:00:55 AM (2948 views)
Re: Goverment Lien - Frances Myers/FL
2/4/2008 10:26:59 AM (2534 views)

Recidivist Statute Fails to Pass Connecticut Legislature - Kevin Ahern/CT
1/26/2008 8:49:06 AM (2814 views)
Re: Recidivist Statute Fails to Pass Connecticut Legislature - george Hubka/MI
1/26/2008 5:54:28 PM (2818 views)
3 strikes law already on books - Bobbi Shorthouse, Notary Public/CT
1/28/2008 10:39:01 AM (2685 views)
Re: 3 strikes law already on books - terry sutton/CT
2/6/2008 12:06:22 AM (2506 views)
Re: 3 strikes law already on books - Scott Perry/PA
2/6/2008 1:45:44 AM (2534 views)
Re: 3 strikes law already on books - Kevin Ahern/CT
2/6/2008 2:52:02 AM (2535 views)

Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2148 views)




Contemporary Realty Solutions - Virginia Capps/TN
1/25/2008 2:34:47 PM (2948 views)
Re: Contemporary Realty Solutions - Jessica Talley/NJ
1/25/2008 3:34:11 PM (2832 views)
Re: Contemporary Realty Solutions - Patricia  (Trish) Wagner/OR
1/28/2008 2:26:28 AM (2795 views)
Re: Contemporary Realty Solutions - Sherry Greene/MI
1/28/2008 8:52:14 AM (2717 views)
Re: Contemporary Realty Solutions - Dan Zook/NY
1/28/2008 9:02:36 AM (2727 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:01:42 PM (2632 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:03:56 PM (2619 views)
Re: Contemporary Realty Solutions - Virginia Capps/TN
2/7/2008 3:11:21 PM (2547 views)

GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2437 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (3834 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (2581 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (2529 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (2430 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (2485 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (2472 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (2540 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (2591 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (2315 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (2394 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (2415 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (2413 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (2389 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (2476 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (2428 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (2347 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (2391 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (2411 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (5603 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (2983 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (2834 views)

 

One of the biggest problems in dealing with closely held corporations and limited liability companies is that the contracts for services are with those entities rather than the individual officers/directors/members. The purpose for which they are created is to limit liability. It works very effectively...leaving the officers/directors/members free to walk away from any personal liability for the corporate debts. Unfortunately for the abstractors it is all very legal.

However, there are also legal ways around it. If a client wishes to benefit from the advantage of limited liability, the client is required to observe the legal formalities of operating as a corporation or LLC. Very often a client will operate under a trade name rather than a corporate/LLC name, or fail to use the full corporate/LLC name on their search order.In which case one of the easiest ways around the corporate shield is to require a signature on the search order. 

Operating under a trade name while failing to disclose the full name of the underlying corporation or LLC , and failing to disclose his agency status may be enough to impose personal liability on the signatory. Simply failing to write the "Inc." or "LLC" after the name of the business shown on the contract may be enough to contribute to his personal liability because it is through these abbreviations that the other party to the transaction is given notice that he is dealing with an entity with limited liability.  While a corporate or limited liability company has a legal identity... trade names do not. A trade name is simply a legal fiction created to market the client's services  more effectively.

If the client is transacting business without making a full disclosure of its identity, and if the individual signatory  fails to disclose his job title on the search order ...it may open the door to creating personal liability for the individual signatory alternately from the corporate/LLC liability.

Pursuant to the laws of agency in Connecticut an individual who is acting as an agent for a principal is required to disclose both that he is acting in the capacity of an agent and the full identity of the principal on whose behalf  he is acting. He can disclose his agency status by carefully drafting the signature line on a contract to read something like this:

                                     XYZ, Inc. d/b/a Fat Chance Enterprises

                                      By ____________________
                                                 John Doe

                                      President
                                      Here Unto Duly Authorized

Through this type of signature the name of the corporation is fully disclosed. The trade name with the d/b/a (doing business as) is fully disclosed. The signatory's agency status is fully disclosed through the use of the word "by" in front of his signature and by the designation of his job title.

Very often an individual will simply sign his name to a contract/search order without this information...thinking that he is protected by the corporate shield...wrong. Under Connecticut law the signatory is required to make these disclosures at the time he enters into contract with the other party. It is not incumbent upon the other party to the transaction to have to search and discover this information on his own.

I have successfully sued individuals who thought they were protected by the corporate shield as recently as two years ago using this argument. It is not a matter of piercing the corporate veil...always difficult even in the case of "mom and pop" closely held corporations or LLC's. Rather it is a matter of the signatory acting as an agent for an undisclosed principal. In such suits piercing the corporate veil is not an issue.

You will need to make inquiry to find out if the law of agency in your state is similar to Connecticut's. I would be surprised if it were not. The law of agency has a long history of evolution from common law precepts.


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Re: Mezzo Settlement Services - george Hubka/MI
1/25/2008 1:21:45 PM (2788 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (2823 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (4858 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (2620 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (3264 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (2667 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (2602 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (2851 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (2760 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (2746 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (2611 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (2630 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (2877 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (2412 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (2298 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (2269 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (2352 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (2276 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (2306 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (2134 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (2928 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (2582 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (2911 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (2520 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (2504 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (2481 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (2315 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (2339 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (2359 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (2382 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (2351 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (2254 views)

Gotham Abstract - Sheila Sten/PA
1/23/2008 3:12:00 PM (2417 views)

Global Title Reporting Services - J Nisonger/CA
1/22/2008 7:39:16 PM (2144 views)

ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 2:18:09 PM (4482 views)
Re: ValuAmerica - Wanda Steudel/OH
1/22/2008 3:03:11 PM (2828 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 3:12:18 PM (2638 views)
Re: ValuAmerica - Scott Perry/PA
1/22/2008 3:43:18 PM (2687 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 8:05:13 PM (2770 views)
Re: ValuAmerica - Jean Allen/NC
1/22/2008 9:09:10 PM (2615 views)
Re: ValuAmerica - J Nisonger/CA
1/22/2008 10:32:17 PM (2583 views)
Re: ValuAmerica - Patrick Scott/IL
1/22/2008 10:52:28 PM (2728 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 11:38:35 PM (2880 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/23/2008 6:34:07 PM (2568 views)
Re: ValuAmerica - Glenda Hodge/TN
1/23/2008 9:15:31 PM (2538 views)
Re: ValuAmerica - PHILIP YIANILOS/VA
1/28/2008 7:17:12 AM (2546 views)
Re: ValuAmerica - Jennifer  Porter/FL
1/28/2008 9:53:04 AM (2574 views)

Ameristar - Douglas Hintzman/IA
1/22/2008 12:01:56 PM (2835 views)
Re: Ameristar - Lori Cassidy/CT
1/22/2008 4:58:00 PM (2473 views)
Re: Ameristar - KS/IN
1/23/2008 8:19:01 PM (2371 views)
Re: Ameristar - Jeff Troutman/TN
1/28/2008 7:31:40 AM (2451 views)


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