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ASA REAL ESTATE TITLE SERVICES - ARTHUR LIPPMAN/MA
1/31/2008 3:46:37 PM (3315 views)
Re: ASA REAL ESTATE TITLE SERVICES - Joanie Hahr/VT
2/6/2008 5:25:46 PM (4570 views)

Red Vision - David Bloys/TX
1/31/2008 3:36:37 PM (5245 views)
Re: Red Vision - Jarrod Clabaugh/OH
1/31/2008 3:49:47 PM (4752 views)
Re: Red Vision - Janice /OH
2/1/2008 2:45:25 PM (4433 views)

I need your help! And So Do Your Local Officials - David Bloys/TX
1/31/2008 1:56:29 PM (4719 views)
Re: I need your help! And So Do Your Local Officials - David Bloys/TX
1/31/2008 3:24:05 PM (4564 views)
Re: I need your help! And So Do Your Local Officials - Jason Sheppard/PA
2/4/2008 5:29:01 PM (4292 views)
Re: I need your help! And So Do Your Local Officials - Jason Sheppard/PA
2/4/2008 5:29:01 PM (4211 views)

Real Estate One aka REO Land Services, Inc. - VIVIAN SLYKER/OH
1/31/2008 1:41:34 PM (3893 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
1/31/2008 3:31:58 PM (4738 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
2/1/2008 10:41:54 AM (4672 views)
Re: Real Estate One aka REO Land Services, Inc. - Dan Zook/NY
2/1/2008 12:12:23 PM (4750 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
2/1/2008 12:18:29 PM (4757 views)
Re: Real Estate One aka REO Land Services, Inc. - Dan Zook/NY
2/1/2008 2:43:15 PM (4386 views)
Re: Real Estate One aka REO Land Services, Inc. - Jessica Talley/NJ
2/1/2008 5:09:00 PM (4416 views)

AFX Corp. - Anita Backlund/MN
1/28/2008 11:16:46 PM (3465 views)
Re: AFX Corp. - STEVE MEINECKE/TN
1/28/2008 11:57:12 PM (4472 views)
Re: AFX Corp. - ks/IN
1/29/2008 8:48:29 AM (4887 views)
Re: AFX Corp. - Jessica Talley/NJ
1/29/2008 1:40:45 PM (4770 views)
Re: AFX Corp. - Anita Backlund/MN
1/29/2008 10:22:45 PM (4890 views)
Re: AFX Corp. - ANTHONY MUZIO/NY
1/30/2008 7:26:12 PM (4863 views)
Re: AFX Corp. - Vincent Hanna/VA
1/31/2008 12:17:23 PM (4755 views)
Re: AFX Corp. - Anita Backlund/MN
2/8/2008 11:19:26 PM (4629 views)




Payment from Richmond Title - Jeff Troutman/TN
1/28/2008 7:38:11 AM (3549 views)
Re: Payment from Richmond Title - Jessica Talley/NJ
1/28/2008 8:12:24 PM (4743 views)
Re: Payment from Richmond Title - Barbara Bennett/IN
1/28/2008 8:39:35 PM (4680 views)
Re: Payment from Richmond Title - Vikki Moffitt/GA
1/29/2008 8:31:24 AM (4744 views)
Re: Payment from Richmond Title - martha campbell/VA
2/4/2008 7:57:57 AM (4669 views)
Re: Payment from Richmond Title - Michaela Urban/OH
3/5/2008 5:44:25 PM (4917 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
3/14/2008 12:35:52 AM (4271 views)
Re: Payment from Richmond Title - Jean Allen/NC
4/1/2008 8:52:14 AM (4313 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
5/9/2008 4:33:29 PM (4073 views)

Goverment Lien - Howard Demps/FL
1/27/2008 8:00:55 AM (3478 views)
Re: Goverment Lien - Frances Myers/FL
2/4/2008 10:26:59 AM (4132 views)

Recidivist Statute Fails to Pass Connecticut Legislature - Kevin Ahern/CT
1/26/2008 8:49:06 AM (3415 views)
Re: Recidivist Statute Fails to Pass Connecticut Legislature - george Hubka/MI
1/26/2008 5:54:28 PM (4501 views)
3 strikes law already on books - Bobbi Shorthouse, Notary Public/CT
1/28/2008 10:39:01 AM (4360 views)
Re: 3 strikes law already on books - terry sutton/CT
2/6/2008 12:06:22 AM (4154 views)
Re: 3 strikes law already on books - Scott Perry/PA
2/6/2008 1:45:44 AM (4096 views)
Re: 3 strikes law already on books - Kevin Ahern/CT
2/6/2008 2:52:02 AM (4157 views)

Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2518 views)

Contemporary Realty Solutions - Virginia Capps/TN
1/25/2008 2:34:47 PM (3440 views)
Re: Contemporary Realty Solutions - Jessica Talley/NJ
1/25/2008 3:34:11 PM (4531 views)
Re: Contemporary Realty Solutions - Patricia  (Trish) Wagner/OR
1/28/2008 2:26:28 AM (4393 views)
Re: Contemporary Realty Solutions - Sherry Greene/MI
1/28/2008 8:52:14 AM (4364 views)
Re: Contemporary Realty Solutions - Dan Zook/NY
1/28/2008 9:02:36 AM (4415 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:01:42 PM (4244 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:03:56 PM (4204 views)
Re: Contemporary Realty Solutions - Virginia Capps/TN
2/7/2008 3:11:21 PM (4174 views)

GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2805 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4492 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (4352 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (4264 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (4099 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (4210 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (4168 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (4177 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (4312 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (4008 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (4130 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (4109 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (4074 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (4067 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (4214 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (4269 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (3990 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (4080 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (4140 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (6191 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (4746 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (4608 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 (4477 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (4445 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (6659 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (4330 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (5000 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (4371 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (4302 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (4551 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (4389 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (4466 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (4293 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (4414 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3425 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (4128 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (3961 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (3879 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (4001 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (3955 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (3869 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (3767 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (3494 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (4309 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (4617 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (4242 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (4169 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (4150 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (4029 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (3991 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (4036 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (3977 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (3977 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (3893 views)


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