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MERS and DOT - Jeanine Johnson/FL
1/31/2008 5:57:24 PM (3233 views)
Re: MERS and DOT - Jay Duncan/MO
1/31/2008 6:31:16 PM (6544 views)

ASA REAL ESTATE TITLE SERVICES - ARTHUR LIPPMAN/MA
1/31/2008 3:46:37 PM (3240 views)
Re: ASA REAL ESTATE TITLE SERVICES - Joanie Hahr/VT
2/6/2008 5:25:46 PM (4115 views)

Red Vision - David Bloys/TX
1/31/2008 3:36:37 PM (5120 views)
Re: Red Vision - Jarrod Clabaugh/OH
1/31/2008 3:49:47 PM (4388 views)
Re: Red Vision - Janice /OH
2/1/2008 2:45:25 PM (4042 views)

I need your help! And So Do Your Local Officials - David Bloys/TX
1/31/2008 1:56:29 PM (4608 views)
Re: I need your help! And So Do Your Local Officials - David Bloys/TX
1/31/2008 3:24:05 PM (4215 views)
Re: I need your help! And So Do Your Local Officials - Jason Sheppard/PA
2/4/2008 5:29:01 PM (3916 views)
Re: I need your help! And So Do Your Local Officials - Jason Sheppard/PA
2/4/2008 5:29:01 PM (3865 views)

Real Estate One aka REO Land Services, Inc. - VIVIAN SLYKER/OH
1/31/2008 1:41:34 PM (3814 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
1/31/2008 3:31:58 PM (4409 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
2/1/2008 10:41:54 AM (4323 views)
Re: Real Estate One aka REO Land Services, Inc. - Dan Zook/NY
2/1/2008 12:12:23 PM (4435 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
2/1/2008 12:18:29 PM (4440 views)
Re: Real Estate One aka REO Land Services, Inc. - Dan Zook/NY
2/1/2008 2:43:15 PM (4036 views)
Re: Real Estate One aka REO Land Services, Inc. - Jessica Talley/NJ
2/1/2008 5:09:00 PM (4079 views)




AFX Corp. - Anita Backlund/MN
1/28/2008 11:16:46 PM (3400 views)
Re: AFX Corp. - STEVE MEINECKE/TN
1/28/2008 11:57:12 PM (4133 views)
Re: AFX Corp. - ks/IN
1/29/2008 8:48:29 AM (4553 views)
Re: AFX Corp. - Jessica Talley/NJ
1/29/2008 1:40:45 PM (4406 views)
Re: AFX Corp. - Anita Backlund/MN
1/29/2008 10:22:45 PM (4543 views)
Re: AFX Corp. - ANTHONY MUZIO/NY
1/30/2008 7:26:12 PM (4511 views)
Re: AFX Corp. - Vincent Hanna/VA
1/31/2008 12:17:23 PM (4399 views)
Re: AFX Corp. - Anita Backlund/MN
2/8/2008 11:19:26 PM (4254 views)

Payment from Richmond Title - Jeff Troutman/TN
1/28/2008 7:38:11 AM (3478 views)
Re: Payment from Richmond Title - Jessica Talley/NJ
1/28/2008 8:12:24 PM (4313 views)
Re: Payment from Richmond Title - Barbara Bennett/IN
1/28/2008 8:39:35 PM (4309 views)
Re: Payment from Richmond Title - Vikki Moffitt/GA
1/29/2008 8:31:24 AM (4374 views)
Re: Payment from Richmond Title - martha campbell/VA
2/4/2008 7:57:57 AM (4310 views)
Re: Payment from Richmond Title - Michaela Urban/OH
3/5/2008 5:44:25 PM (4502 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
3/14/2008 12:35:52 AM (3894 views)
Re: Payment from Richmond Title - Jean Allen/NC
4/1/2008 8:52:14 AM (3903 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
5/9/2008 4:33:29 PM (3711 views)

Goverment Lien - Howard Demps/FL
1/27/2008 8:00:55 AM (3397 views)
Re: Goverment Lien - Frances Myers/FL
2/4/2008 10:26:59 AM (3746 views)

Recidivist Statute Fails to Pass Connecticut Legislature - Kevin Ahern/CT
1/26/2008 8:49:06 AM (3312 views)
Re: Recidivist Statute Fails to Pass Connecticut Legislature - george Hubka/MI
1/26/2008 5:54:28 PM (4109 views)
3 strikes law already on books - Bobbi Shorthouse, Notary Public/CT
1/28/2008 10:39:01 AM (3984 views)
Re: 3 strikes law already on books - terry sutton/CT
2/6/2008 12:06:22 AM (3780 views)
Re: 3 strikes law already on books - Scott Perry/PA
2/6/2008 1:45:44 AM (3742 views)
Re: 3 strikes law already on books - Kevin Ahern/CT
2/6/2008 2:52:02 AM (3810 views)

Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2460 views)

Contemporary Realty Solutions - Virginia Capps/TN
1/25/2008 2:34:47 PM (3361 views)
Re: Contemporary Realty Solutions - Jessica Talley/NJ
1/25/2008 3:34:11 PM (4124 views)
Re: Contemporary Realty Solutions - Patricia  (Trish) Wagner/OR
1/28/2008 2:26:28 AM (3989 views)
Re: Contemporary Realty Solutions - Sherry Greene/MI
1/28/2008 8:52:14 AM (3988 views)
Re: Contemporary Realty Solutions - Dan Zook/NY
1/28/2008 9:02:36 AM (4032 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:01:42 PM (3844 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:03:56 PM (3826 views)
Re: Contemporary Realty Solutions - Virginia Capps/TN
2/7/2008 3:11:21 PM (3797 views)

GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2745 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4368 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (3920 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (3831 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (3654 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (3782 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (3747 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (3732 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (3870 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (3578 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (3677 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (3699 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (3656 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (3633 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (3727 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (3814 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (3560 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (3645 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (3699 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (6106 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (4307 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (4188 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 (4017 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (3994 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (6199 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (3908 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (4550 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (3932 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (3885 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (4107 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (3960 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (4022 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (3845 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (3970 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3292 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (3736 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (3575 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (3498 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (3597 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (3558 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (3474 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (3348 views)


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