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GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2618 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4115 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (3241 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (3188 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (3087 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (3112 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (3093 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (3164 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (3245 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (2920 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (3026 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (3080 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (3033 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (3000 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (3090 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (3158 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (2963 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (3051 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (3054 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (5901 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (3645 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (3510 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 (3399 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (3439 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (5536 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (3256 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (3898 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (3302 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (3215 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (3482 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (3390 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (3403 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (3238 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (3264 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3114 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (3066 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (2917 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (2904 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (2982 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (2908 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (2917 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (2758 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (3225 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (3283 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (3591 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (3239 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (3193 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (3176 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (2982 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (2989 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (3000 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (3029 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (3009 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (2915 views)




Gotham Abstract - Sheila Sten/PA
1/23/2008 3:12:00 PM (2585 views)

Global Title Reporting Services - J Nisonger/CA
1/22/2008 7:39:16 PM (2311 views)

ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 2:18:09 PM (4890 views)
Re: ValuAmerica - Wanda Steudel/OH
1/22/2008 3:03:11 PM (3539 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 3:12:18 PM (3252 views)
Re: ValuAmerica - Scott Perry/PA
1/22/2008 3:43:18 PM (3308 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 8:05:13 PM (3405 views)
Re: ValuAmerica - Jean Allen/NC
1/22/2008 9:09:10 PM (3263 views)
Re: ValuAmerica - J Nisonger/CA
1/22/2008 10:32:17 PM (3232 views)
Re: ValuAmerica - Patrick Scott/IL
1/22/2008 10:52:28 PM (3353 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 11:38:35 PM (3513 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/23/2008 6:34:07 PM (3224 views)
Re: ValuAmerica - Glenda Hodge/TN
1/23/2008 9:15:31 PM (3140 views)
Re: ValuAmerica - PHILIP YIANILOS/VA
1/28/2008 7:17:12 AM (3188 views)
Re: ValuAmerica - Jennifer  Porter/FL
1/28/2008 9:53:04 AM (3180 views)

Ameristar - Douglas Hintzman/IA
1/22/2008 12:01:56 PM (3101 views)
Re: Ameristar - Lori Cassidy/CT
1/22/2008 4:58:00 PM (3107 views)
Re: Ameristar - KS/IN
1/23/2008 8:19:01 PM (2976 views)
Re: Ameristar - Jeff Troutman/TN
1/28/2008 7:31:40 AM (3080 views)

Question: Adjustable Rate Mortgages - Todd Mathews/FL
1/22/2008 11:28:20 AM (2789 views)
Re: Question: Adjustable Rate Mortgages - Ben Kohnen/WI
1/22/2008 12:28:49 PM (3100 views)
Re: Question: Adjustable Rate Mortgages - Rob  Robinson/PA
1/24/2008 12:18:07 PM (2870 views)
Re: Question: Adjustable Rate Mortgages - Jason Sheppard/PA
1/25/2008 6:52:07 PM (2893 views)

QUESTION -- billing practices, philosophy - Joe Ab/AZ
1/18/2008 1:39:35 PM (2867 views)
Re: QUESTION -- billing practices, philosophy - Jessica Talley/NJ
1/18/2008 6:43:29 PM (3171 views)
Re: QUESTION -- billing practices, philosophy - Joe Ab/AK
1/18/2008 11:25:56 PM (3130 views)
Re: QUESTION -- billing practices, philosophy - Jessica Talley/NJ
1/19/2008 11:37:33 AM (3076 views)
Re: QUESTION -- billing practices, philosophy - Dan Zook/NY
1/22/2008 9:14:13 AM (2965 views)

APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 8:24:59 AM (3409 views)
Re: APEX TITLE AND ESCROW - Kevin Ahern/CT
1/18/2008 8:35:04 AM (3445 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 8:44:07 AM (3346 views)
Re: APEX TITLE AND ESCROW - Kevin Ahern/CT
1/18/2008 8:59:44 AM (3340 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 9:04:01 AM (3446 views)
Re: APEX TITLE AND ESCROW - Onondaga Abstract/NY
1/18/2008 1:03:25 PM (3351 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/22/2008 8:37:43 PM (3146 views)
APEX - NO ONE/AR
1/23/2008 8:25:47 PM (3175 views)
Re: APEX - Scott Perry/PA
1/23/2008 9:01:50 PM (3025 views)
Re: APEX - AN/AK
1/24/2008 2:49:22 AM (3119 views)
Re: APEX - AN/AK
1/24/2008 2:55:22 AM (3084 views)
Re: APEX - STEVE MEINECKE/TN
1/24/2008 12:14:08 PM (3080 views)
Re: APEX - Scott Perry/PA
1/24/2008 1:24:40 PM (3102 views)
Re: APEX - AN/AK
1/24/2008 2:35:47 PM (3000 views)
Re: APEX - Scott Perry/PA
1/24/2008 4:00:06 PM (3179 views)
Re: APEX - Jessica Talley/NJ
1/24/2008 5:13:58 PM (3052 views)
Re: APEX - J.T. Shoemaker/NY
1/24/2008 4:50:57 PM (3053 views)
Re: APEX - Scott Perry/PA
1/24/2008 6:07:28 PM (2973 views)
Re: APEX - an/AK
1/24/2008 9:39:01 PM (2989 views)
Re: APEX - J Nisonger/CA
1/25/2008 1:49:21 AM (3037 views)
Re: APEX - AN/AK
1/25/2008 7:51:30 AM (2938 views)
Re: APEX - Robert Franco/OH
1/24/2008 11:14:41 AM (2955 views)
Re: APEX - AN/AK
1/24/2008 2:33:48 PM (3031 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/24/2008 1:20:38 PM (3017 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/24/2008 6:49:00 PM (3040 views)
Re: APEX TITLE AND ESCROW - J Nisonger/CA
1/25/2008 1:57:03 AM (7522 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/22/2008 8:35:26 PM (3128 views)
Re: APEX TITLE AND ESCROW - Constance Foye/VA
1/22/2008 9:30:01 PM (2953 views)

Kansas Abstractors, help? - Kansas Abstractor/KS
1/17/2008 9:59:49 PM (2791 views)
Re: Kansas Abstractors, help? - Jay Duncan/MO
1/17/2008 10:41:48 PM (3180 views)

NALTEA Conference Starts Tomorrow - Jay Duncan/MO
1/17/2008 5:09:29 PM (2532 views)
Re: NALTEA Conference Starts Tomorrow - Debbie Thibodeaux/LA
1/17/2008 6:58:43 PM (2989 views)
Re: NALTEA Conference Starts Tomorrow - Patrick Scott/IL
1/17/2008 8:08:03 PM (3026 views)

Solicitation -- state of the industry & 2008 - MX/CO
1/16/2008 1:42:56 AM (2877 views)
Re: Solicitation -- state of the industry & 2008 - Kevin Ahern/CT
1/16/2008 5:56:42 AM (3287 views)
Re: Solicitation -- state of the industry & 2008 - Scott Perry/PA
1/16/2008 7:31:51 AM (3263 views)
Re: Solicitation -- state of the industry & 2008 - Kevin Ahern/CT
1/17/2008 4:45:37 AM (3075 views)
State of the real estate industry - Bobbi Shorthouse, Notary Public/CT
1/16/2008 8:35:58 AM (3067 views)
Re: State of the real estate industry - Kevin Ahern/CT
1/16/2008 9:10:18 AM (3144 views)
Re: State of the real estate industry - JON SARVER/GA
1/22/2008 4:47:58 PM (2779 views)


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