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AFX Corp. - Anita Backlund/MN
1/28/2008 11:16:46 PM (3164 views)
Re: AFX Corp. - STEVE MEINECKE/TN
1/28/2008 11:57:12 PM (3448 views)
Re: AFX Corp. - ks/IN
1/29/2008 8:48:29 AM (3800 views)
Re: AFX Corp. - Jessica Talley/NJ
1/29/2008 1:40:45 PM (3659 views)
Re: AFX Corp. - Anita Backlund/MN
1/29/2008 10:22:45 PM (3762 views)
Re: AFX Corp. - ANTHONY MUZIO/NY
1/30/2008 7:26:12 PM (3751 views)
Re: AFX Corp. - Vincent Hanna/VA
1/31/2008 12:17:23 PM (3669 views)
Re: AFX Corp. - Anita Backlund/MN
2/8/2008 11:19:26 PM (3534 views)

Payment from Richmond Title - Jeff Troutman/TN
1/28/2008 7:38:11 AM (3271 views)
Re: Payment from Richmond Title - Jessica Talley/NJ
1/28/2008 8:12:24 PM (3599 views)
Re: Payment from Richmond Title - Barbara Bennett/IN
1/28/2008 8:39:35 PM (3606 views)
Re: Payment from Richmond Title - Vikki Moffitt/GA
1/29/2008 8:31:24 AM (3623 views)
Re: Payment from Richmond Title - martha campbell/VA
2/4/2008 7:57:57 AM (3579 views)
Re: Payment from Richmond Title - Michaela Urban/OH
3/5/2008 5:44:25 PM (3760 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
3/14/2008 12:35:52 AM (3228 views)
Re: Payment from Richmond Title - Jean Allen/NC
4/1/2008 8:52:14 AM (3164 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
5/9/2008 4:33:29 PM (2992 views)

Goverment Lien - Howard Demps/FL
1/27/2008 8:00:55 AM (3173 views)
Re: Goverment Lien - Frances Myers/FL
2/4/2008 10:26:59 AM (3127 views)

Recidivist Statute Fails to Pass Connecticut Legislature - Kevin Ahern/CT
1/26/2008 8:49:06 AM (3048 views)
Re: Recidivist Statute Fails to Pass Connecticut Legislature - george Hubka/MI
1/26/2008 5:54:28 PM (3390 views)
3 strikes law already on books - Bobbi Shorthouse, Notary Public/CT
1/28/2008 10:39:01 AM (3287 views)
Re: 3 strikes law already on books - terry sutton/CT
2/6/2008 12:06:22 AM (3072 views)
Re: 3 strikes law already on books - Scott Perry/PA
2/6/2008 1:45:44 AM (3095 views)
Re: 3 strikes law already on books - Kevin Ahern/CT
2/6/2008 2:52:02 AM (3118 views)

Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2275 views)




Contemporary Realty Solutions - Virginia Capps/TN
1/25/2008 2:34:47 PM (3157 views)
Re: Contemporary Realty Solutions - Jessica Talley/NJ
1/25/2008 3:34:11 PM (3463 views)
Re: Contemporary Realty Solutions - Patricia  (Trish) Wagner/OR
1/28/2008 2:26:28 AM (3366 views)
Re: Contemporary Realty Solutions - Sherry Greene/MI
1/28/2008 8:52:14 AM (3311 views)
Re: Contemporary Realty Solutions - Dan Zook/NY
1/28/2008 9:02:36 AM (3329 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:01:42 PM (3183 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:03:56 PM (3187 views)
Re: Contemporary Realty Solutions - Virginia Capps/TN
2/7/2008 3:11:21 PM (3113 views)

GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2596 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4088 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (3175 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (3119 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (3031 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (3048 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (3033 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (3109 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (3178 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (2865 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (2965 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (3007 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (2976 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (2941 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (3032 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (3091 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (2898 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (2983 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (2985 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (5865 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (3583 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (3434 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 (3345 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (3379 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (5479 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (3197 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (3838 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (3248 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (3158 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (3435 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (3321 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (3337 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (3182 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (3212 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3092 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (3006 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (2865 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (2843 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (2924 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (2853 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (2858 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (2707 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (3192 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (3222 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (3536 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (3171 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (3132 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (3111 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (2926 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (2939 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (2953 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (2981 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (2955 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (2860 views)

Gotham Abstract - Sheila Sten/PA
1/23/2008 3:12:00 PM (2573 views)

Global Title Reporting Services - J Nisonger/CA
1/22/2008 7:39:16 PM (2298 views)

ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 2:18:09 PM (4866 views)
Re: ValuAmerica - Wanda Steudel/OH
1/22/2008 3:03:11 PM (3485 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 3:12:18 PM (3202 views)
Re: ValuAmerica - Scott Perry/PA
1/22/2008 3:43:18 PM (3264 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 8:05:13 PM (3363 views)
Re: ValuAmerica - Jean Allen/NC
1/22/2008 9:09:10 PM (3215 views)
Re: ValuAmerica - J Nisonger/CA
1/22/2008 10:32:17 PM (3174 views)
Re: ValuAmerica - Patrick Scott/IL
1/22/2008 10:52:28 PM (3309 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 11:38:35 PM (3463 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/23/2008 6:34:07 PM (3164 views)
Re: ValuAmerica - Glenda Hodge/TN
1/23/2008 9:15:31 PM (3094 views)
Re: ValuAmerica - PHILIP YIANILOS/VA
1/28/2008 7:17:12 AM (3131 views)
Re: ValuAmerica - Jennifer  Porter/FL
1/28/2008 9:53:04 AM (3128 views)

Ameristar - Douglas Hintzman/IA
1/22/2008 12:01:56 PM (3078 views)
Re: Ameristar - Lori Cassidy/CT
1/22/2008 4:58:00 PM (3048 views)
Re: Ameristar - KS/IN
1/23/2008 8:19:01 PM (2920 views)
Re: Ameristar - Jeff Troutman/TN
1/28/2008 7:31:40 AM (3019 views)


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