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Payment from Richmond Title - Jeff Troutman/TN
1/28/2008 7:38:11 AM (3312 views)
Re: Payment from Richmond Title - Jessica Talley/NJ
1/28/2008 8:12:24 PM (3775 views)
Re: Payment from Richmond Title - Barbara Bennett/IN
1/28/2008 8:39:35 PM (3779 views)
Re: Payment from Richmond Title - Vikki Moffitt/GA
1/29/2008 8:31:24 AM (3810 views)
Re: Payment from Richmond Title - martha campbell/VA
2/4/2008 7:57:57 AM (3751 views)
Re: Payment from Richmond Title - Michaela Urban/OH
3/5/2008 5:44:25 PM (3954 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
3/14/2008 12:35:52 AM (3401 views)
Re: Payment from Richmond Title - Jean Allen/NC
4/1/2008 8:52:14 AM (3315 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
5/9/2008 4:33:29 PM (3137 views)

Goverment Lien - Howard Demps/FL
1/27/2008 8:00:55 AM (3208 views)
Re: Goverment Lien - Frances Myers/FL
2/4/2008 10:26:59 AM (3311 views)

Recidivist Statute Fails to Pass Connecticut Legislature - Kevin Ahern/CT
1/26/2008 8:49:06 AM (3081 views)
Re: Recidivist Statute Fails to Pass Connecticut Legislature - george Hubka/MI
1/26/2008 5:54:28 PM (3563 views)
3 strikes law already on books - Bobbi Shorthouse, Notary Public/CT
1/28/2008 10:39:01 AM (3460 views)
Re: 3 strikes law already on books - terry sutton/CT
2/6/2008 12:06:22 AM (3252 views)
Re: 3 strikes law already on books - Scott Perry/PA
2/6/2008 1:45:44 AM (3259 views)
Re: 3 strikes law already on books - Kevin Ahern/CT
2/6/2008 2:52:02 AM (3289 views)

Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2310 views)

Contemporary Realty Solutions - Virginia Capps/TN
1/25/2008 2:34:47 PM (3194 views)
Re: Contemporary Realty Solutions - Jessica Talley/NJ
1/25/2008 3:34:11 PM (3643 views)
Re: Contemporary Realty Solutions - Patricia  (Trish) Wagner/OR
1/28/2008 2:26:28 AM (3522 views)
Re: Contemporary Realty Solutions - Sherry Greene/MI
1/28/2008 8:52:14 AM (3470 views)
Re: Contemporary Realty Solutions - Dan Zook/NY
1/28/2008 9:02:36 AM (3497 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:01:42 PM (3338 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:03:56 PM (3329 views)
Re: Contemporary Realty Solutions - Virginia Capps/TN
2/7/2008 3:11:21 PM (3261 views)




GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2633 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4132 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (3336 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (3276 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (3170 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (3185 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (3179 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (3251 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (3331 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (3005 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (3109 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (3165 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (3115 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (3089 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (3173 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (3255 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (3051 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (3140 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (3145 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (5927 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (3725 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (3594 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 (3475 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (3516 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (5623 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (3336 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (3977 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (3372 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (3289 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (3554 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (3471 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (3483 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (3292 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (3380 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3126 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (3143 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (2993 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (2986 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (3063 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (2982 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (2992 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (2836 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (3243 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (3365 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (3666 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (3312 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (3274 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (3257 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (3057 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (3064 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (3078 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (3105 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (3090 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (2991 views)

Gotham Abstract - Sheila Sten/PA
1/23/2008 3:12:00 PM (2599 views)

Global Title Reporting Services - J Nisonger/CA
1/22/2008 7:39:16 PM (2320 views)

ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 2:18:09 PM (4907 views)
Re: ValuAmerica - Wanda Steudel/OH
1/22/2008 3:03:11 PM (3626 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 3:12:18 PM (3325 views)
Re: ValuAmerica - Scott Perry/PA
1/22/2008 3:43:18 PM (3390 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 8:05:13 PM (3489 views)
Re: ValuAmerica - Jean Allen/NC
1/22/2008 9:09:10 PM (3343 views)
Re: ValuAmerica - J Nisonger/CA
1/22/2008 10:32:17 PM (3314 views)
Re: ValuAmerica - Patrick Scott/IL
1/22/2008 10:52:28 PM (3437 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 11:38:35 PM (3592 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/23/2008 6:34:07 PM (3306 views)
Re: ValuAmerica - Glenda Hodge/TN
1/23/2008 9:15:31 PM (3219 views)
Re: ValuAmerica - PHILIP YIANILOS/VA
1/28/2008 7:17:12 AM (3264 views)
Re: ValuAmerica - Jennifer  Porter/FL
1/28/2008 9:53:04 AM (3257 views)

Ameristar - Douglas Hintzman/IA
1/22/2008 12:01:56 PM (3112 views)
Re: Ameristar - Lori Cassidy/CT
1/22/2008 4:58:00 PM (3185 views)
Re: Ameristar - KS/IN
1/23/2008 8:19:01 PM (3057 views)
Re: Ameristar - Jeff Troutman/TN
1/28/2008 7:31:40 AM (3155 views)

Question: Adjustable Rate Mortgages - Todd Mathews/FL
1/22/2008 11:28:20 AM (2801 views)
Re: Question: Adjustable Rate Mortgages - Ben Kohnen/WI
1/22/2008 12:28:49 PM (3187 views)
Re: Question: Adjustable Rate Mortgages - Rob  Robinson/PA
1/24/2008 12:18:07 PM (2951 views)
Re: Question: Adjustable Rate Mortgages - Jason Sheppard/PA
1/25/2008 6:52:07 PM (2967 views)


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