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Payment from Richmond Title - Jeff Troutman/TN
1/28/2008 7:38:11 AM (3427 views)
Re: Payment from Richmond Title - Jessica Talley/NJ
1/28/2008 8:12:24 PM (4162 views)
Re: Payment from Richmond Title - Barbara Bennett/IN
1/28/2008 8:39:35 PM (4143 views)
Re: Payment from Richmond Title - Vikki Moffitt/GA
1/29/2008 8:31:24 AM (4188 views)
Re: Payment from Richmond Title - martha campbell/VA
2/4/2008 7:57:57 AM (4144 views)
Re: Payment from Richmond Title - Michaela Urban/OH
3/5/2008 5:44:25 PM (4335 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
3/14/2008 12:35:52 AM (3731 views)
Re: Payment from Richmond Title - Jean Allen/NC
4/1/2008 8:52:14 AM (3734 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
5/9/2008 4:33:29 PM (3535 views)

Goverment Lien - Howard Demps/FL
1/27/2008 8:00:55 AM (3327 views)
Re: Goverment Lien - Frances Myers/FL
2/4/2008 10:26:59 AM (3590 views)

Recidivist Statute Fails to Pass Connecticut Legislature - Kevin Ahern/CT
1/26/2008 8:49:06 AM (3241 views)
Re: Recidivist Statute Fails to Pass Connecticut Legislature - george Hubka/MI
1/26/2008 5:54:28 PM (3962 views)
3 strikes law already on books - Bobbi Shorthouse, Notary Public/CT
1/28/2008 10:39:01 AM (3829 views)
Re: 3 strikes law already on books - terry sutton/CT
2/6/2008 12:06:22 AM (3634 views)
Re: 3 strikes law already on books - Scott Perry/PA
2/6/2008 1:45:44 AM (3588 views)
Re: 3 strikes law already on books - Kevin Ahern/CT
2/6/2008 2:52:02 AM (3653 views)

Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2422 views)

Contemporary Realty Solutions - Virginia Capps/TN
1/25/2008 2:34:47 PM (3311 views)
Re: Contemporary Realty Solutions - Jessica Talley/NJ
1/25/2008 3:34:11 PM (3980 views)
Re: Contemporary Realty Solutions - Patricia  (Trish) Wagner/OR
1/28/2008 2:26:28 AM (3835 views)
Re: Contemporary Realty Solutions - Sherry Greene/MI
1/28/2008 8:52:14 AM (3841 views)
Re: Contemporary Realty Solutions - Dan Zook/NY
1/28/2008 9:02:36 AM (3871 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:01:42 PM (3695 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:03:56 PM (3696 views)
Re: Contemporary Realty Solutions - Virginia Capps/TN
2/7/2008 3:11:21 PM (3654 views)


Real Title Services


GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2711 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4281 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (3769 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (3683 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (3522 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (3604 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (3585 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (3585 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (3733 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (3414 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (3517 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (3551 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (3522 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (3483 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (3587 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (3665 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (3390 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (3491 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (3557 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (6050 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (4155 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (4064 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 (3866 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (3850 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (6064 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (3754 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (4403 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (3785 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (3727 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (3953 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (3823 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (3874 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (3707 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (3818 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3229 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (3584 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (3441 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (3364 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (3457 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (3418 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (3347 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (3205 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (3371 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (3779 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (4096 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (3733 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (3645 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (3623 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (3484 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (3482 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (3491 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (3457 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (3446 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (3380 views)

Gotham Abstract - Sheila Sten/PA
1/23/2008 3:12:00 PM (2716 views)

Global Title Reporting Services - J Nisonger/CA
1/22/2008 7:39:16 PM (2446 views)

ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 2:18:09 PM (5062 views)
Re: ValuAmerica - Wanda Steudel/OH
1/22/2008 3:03:11 PM (4053 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 3:12:18 PM (3708 views)
Re: ValuAmerica - Scott Perry/PA
1/22/2008 3:43:18 PM (3819 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 8:05:13 PM (3854 views)
Re: ValuAmerica - Jean Allen/NC
1/22/2008 9:09:10 PM (3708 views)
Re: ValuAmerica - J Nisonger/CA
1/22/2008 10:32:17 PM (3763 views)
Re: ValuAmerica - Patrick Scott/IL
1/22/2008 10:52:28 PM (3836 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 11:38:35 PM (4015 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/23/2008 6:34:07 PM (3773 views)
Re: ValuAmerica - Glenda Hodge/TN
1/23/2008 9:15:31 PM (3578 views)
Re: ValuAmerica - PHILIP YIANILOS/VA
1/28/2008 7:17:12 AM (3664 views)
Re: ValuAmerica - Jennifer  Porter/FL
1/28/2008 9:53:04 AM (3698 views)

Ameristar - Douglas Hintzman/IA
1/22/2008 12:01:56 PM (3260 views)
Re: Ameristar - Lori Cassidy/CT
1/22/2008 4:58:00 PM (3633 views)
Re: Ameristar - KS/IN
1/23/2008 8:19:01 PM (3509 views)
Re: Ameristar - Jeff Troutman/TN
1/28/2008 7:31:40 AM (3617 views)

Question: Adjustable Rate Mortgages - Todd Mathews/FL
1/22/2008 11:28:20 AM (2958 views)
Re: Question: Adjustable Rate Mortgages - Ben Kohnen/WI
1/22/2008 12:28:49 PM (3656 views)
Re: Question: Adjustable Rate Mortgages - Rob  Robinson/PA
1/24/2008 12:18:07 PM (3383 views)
Re: Question: Adjustable Rate Mortgages - Jason Sheppard/PA
1/25/2008 6:52:07 PM (3403 views)


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