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Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4592 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (4506 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (4422 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (4268 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (4387 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (4360 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (4322 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (4486 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (4173 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (4284 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (4272 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (4236 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (4231 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (4385 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (4437 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (4141 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (4249 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (4304 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (6252 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (4911 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (4767 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 (4650 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (4619 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (6844 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (4512 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (5178 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (4548 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (4468 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (4720 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (4569 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (4620 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (4468 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (4594 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3483 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (4262 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (4112 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (4015 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (4135 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (4101 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (3998 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (3902 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (3553 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (4454 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (4782 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (4392 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (4323 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (4300 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (4188 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (4151 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (4189 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (4143 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (4118 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (4041 views)

Gotham Abstract - Sheila Sten/PA
1/23/2008 3:12:00 PM (2859 views)




Global Title Reporting Services - J Nisonger/CA
1/22/2008 7:39:16 PM (2572 views)

ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 2:18:09 PM (5288 views)
Re: ValuAmerica - Wanda Steudel/OH
1/22/2008 3:03:11 PM (4848 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 3:12:18 PM (4394 views)
Re: ValuAmerica - Scott Perry/PA
1/22/2008 3:43:18 PM (4510 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 8:05:13 PM (4591 views)
Re: ValuAmerica - Jean Allen/NC
1/22/2008 9:09:10 PM (4412 views)
Re: ValuAmerica - J Nisonger/CA
1/22/2008 10:32:17 PM (4468 views)
Re: ValuAmerica - Patrick Scott/IL
1/22/2008 10:52:28 PM (4529 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 11:38:35 PM (4660 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/23/2008 6:34:07 PM (4459 views)
Re: ValuAmerica - Glenda Hodge/TN
1/23/2008 9:15:31 PM (4278 views)
Re: ValuAmerica - PHILIP YIANILOS/VA
1/28/2008 7:17:12 AM (4383 views)
Re: ValuAmerica - Jennifer  Porter/FL
1/28/2008 9:53:04 AM (4373 views)

Ameristar - Douglas Hintzman/IA
1/22/2008 12:01:56 PM (3472 views)
Re: Ameristar - Lori Cassidy/CT
1/22/2008 4:58:00 PM (4309 views)
Re: Ameristar - KS/IN
1/23/2008 8:19:01 PM (4196 views)
Re: Ameristar - Jeff Troutman/TN
1/28/2008 7:31:40 AM (4284 views)

Question: Adjustable Rate Mortgages - Todd Mathews/FL
1/22/2008 11:28:20 AM (3174 views)
Re: Question: Adjustable Rate Mortgages - Ben Kohnen/WI
1/22/2008 12:28:49 PM (4338 views)
Re: Question: Adjustable Rate Mortgages - Rob  Robinson/PA
1/24/2008 12:18:07 PM (4073 views)
Re: Question: Adjustable Rate Mortgages - Jason Sheppard/PA
1/25/2008 6:52:07 PM (4081 views)

QUESTION -- billing practices, philosophy - Joe Ab/AZ
1/18/2008 1:39:35 PM (3222 views)
Re: QUESTION -- billing practices, philosophy - Jessica Talley/NJ
1/18/2008 6:43:29 PM (4370 views)
Re: QUESTION -- billing practices, philosophy - Joe Ab/AK
1/18/2008 11:25:56 PM (4367 views)
Re: QUESTION -- billing practices, philosophy - Jessica Talley/NJ
1/19/2008 11:37:33 AM (4312 views)
Re: QUESTION -- billing practices, philosophy - Dan Zook/NY
1/22/2008 9:14:13 AM (4230 views)

APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 8:24:59 AM (3932 views)
Re: APEX TITLE AND ESCROW - Kevin Ahern/CT
1/18/2008 8:35:04 AM (4666 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 8:44:07 AM (4600 views)
Re: APEX TITLE AND ESCROW - Kevin Ahern/CT
1/18/2008 8:59:44 AM (4529 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 9:04:01 AM (4702 views)
Re: APEX TITLE AND ESCROW - Onondaga Abstract/NY
1/18/2008 1:03:25 PM (4554 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/22/2008 8:37:43 PM (4376 views)
APEX - NO ONE/AR
1/23/2008 8:25:47 PM (4416 views)
Re: APEX - Scott Perry/PA
1/23/2008 9:01:50 PM (4274 views)
Re: APEX - AN/AK
1/24/2008 2:49:22 AM (4345 views)
Re: APEX - AN/AK
1/24/2008 2:55:22 AM (4237 views)
Re: APEX - STEVE MEINECKE/TN
1/24/2008 12:14:08 PM (4353 views)
Re: APEX - Scott Perry/PA
1/24/2008 1:24:40 PM (4309 views)
Re: APEX - AN/AK
1/24/2008 2:35:47 PM (4222 views)
Re: APEX - Scott Perry/PA
1/24/2008 4:00:06 PM (4378 views)
Re: APEX - Jessica Talley/NJ
1/24/2008 5:13:58 PM (4258 views)
Re: APEX - J.T. Shoemaker/NY
1/24/2008 4:50:57 PM (4270 views)
Re: APEX - Scott Perry/PA
1/24/2008 6:07:28 PM (4231 views)
Re: APEX - an/AK
1/24/2008 9:39:01 PM (4205 views)
Re: APEX - J Nisonger/CA
1/25/2008 1:49:21 AM (4230 views)
Re: APEX - AN/AK
1/25/2008 7:51:30 AM (4140 views)
Re: APEX - Robert Franco/OH
1/24/2008 11:14:41 AM (4183 views)
Re: APEX - AN/AK
1/24/2008 2:33:48 PM (4283 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/24/2008 1:20:38 PM (4240 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/24/2008 6:49:00 PM (4272 views)
Re: APEX TITLE AND ESCROW - J Nisonger/CA
1/25/2008 1:57:03 AM (9414 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/22/2008 8:35:26 PM (4288 views)
Re: APEX TITLE AND ESCROW - Constance Foye/VA
1/22/2008 9:30:01 PM (4196 views)

Kansas Abstractors, help? - Kansas Abstractor/KS
1/17/2008 9:59:49 PM (3169 views)
Re: Kansas Abstractors, help? - Jay Duncan/MO
1/17/2008 10:41:48 PM (4399 views)

NALTEA Conference Starts Tomorrow - Jay Duncan/MO
1/17/2008 5:09:29 PM (2879 views)
Re: NALTEA Conference Starts Tomorrow - Debbie Thibodeaux/LA
1/17/2008 6:58:43 PM (4266 views)
Re: NALTEA Conference Starts Tomorrow - Patrick Scott/IL
1/17/2008 8:08:03 PM (4260 views)

Solicitation -- state of the industry & 2008 - MX/CO
1/16/2008 1:42:56 AM (3197 views)
Re: Solicitation -- state of the industry & 2008 - Kevin Ahern/CT
1/16/2008 5:56:42 AM (4428 views)
Re: Solicitation -- state of the industry & 2008 - Scott Perry/PA
1/16/2008 7:31:51 AM (4411 views)
Re: Solicitation -- state of the industry & 2008 - Kevin Ahern/CT
1/17/2008 4:45:37 AM (4266 views)
State of the real estate industry - Bobbi Shorthouse, Notary Public/CT
1/16/2008 8:35:58 AM (4273 views)
Re: State of the real estate industry - Kevin Ahern/CT
1/16/2008 9:10:18 AM (4314 views)
Re: State of the real estate industry - JON SARVER/GA
1/22/2008 4:47:58 PM (3956 views)

Navy Federal Settlement Services - Wendi See/SC
1/15/2008 8:46:17 PM (4577 views)
Re: Navy Federal Settlement Services - Barbara Bennett/IN
1/16/2008 7:39:57 AM (4762 views)
Re: Navy Federal Settlement Services - Laurie E/MD
1/16/2008 7:35:34 PM (4510 views)
Re: Navy Federal Settlement Services - Stephanie /SC
1/31/2008 2:09:58 PM (4132 views)
Re: Navy Federal Settlement Services - Wendi See/SC
1/31/2008 7:58:58 PM (4115 views)
Re: Navy Federal Settlement Services - george Hubka/MI
2/1/2008 7:25:21 PM (4448 views)
Re: Navy Federal Settlement Services - Wendi See/SC
2/2/2008 1:04:50 PM (4121 views)


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