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Red Vision - David Bloys/TX
1/31/2008 3:36:37 PM (5114 views)
Re: Red Vision - Jarrod Clabaugh/OH
1/31/2008 3:49:47 PM (4382 views)
Re: Red Vision - Janice /OH
2/1/2008 2:45:25 PM (4032 views)

I need your help! And So Do Your Local Officials - David Bloys/TX
1/31/2008 1:56:29 PM (4596 views)
Re: I need your help! And So Do Your Local Officials - David Bloys/TX
1/31/2008 3:24:05 PM (4175 views)
Re: I need your help! And So Do Your Local Officials - Jason Sheppard/PA
2/4/2008 5:29:01 PM (3866 views)
Re: I need your help! And So Do Your Local Officials - Jason Sheppard/PA
2/4/2008 5:29:01 PM (3820 views)

Real Estate One aka REO Land Services, Inc. - VIVIAN SLYKER/OH
1/31/2008 1:41:34 PM (3809 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
1/31/2008 3:31:58 PM (4397 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
2/1/2008 10:41:54 AM (4314 views)
Re: Real Estate One aka REO Land Services, Inc. - Dan Zook/NY
2/1/2008 12:12:23 PM (4418 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
2/1/2008 12:18:29 PM (4414 views)
Re: Real Estate One aka REO Land Services, Inc. - Dan Zook/NY
2/1/2008 2:43:15 PM (4018 views)
Re: Real Estate One aka REO Land Services, Inc. - Jessica Talley/NJ
2/1/2008 5:09:00 PM (4068 views)

AFX Corp. - Anita Backlund/MN
1/28/2008 11:16:46 PM (3398 views)
Re: AFX Corp. - STEVE MEINECKE/TN
1/28/2008 11:57:12 PM (4126 views)
Re: AFX Corp. - ks/IN
1/29/2008 8:48:29 AM (4539 views)
Re: AFX Corp. - Jessica Talley/NJ
1/29/2008 1:40:45 PM (4393 views)
Re: AFX Corp. - Anita Backlund/MN
1/29/2008 10:22:45 PM (4526 views)
Re: AFX Corp. - ANTHONY MUZIO/NY
1/30/2008 7:26:12 PM (4491 views)
Re: AFX Corp. - Vincent Hanna/VA
1/31/2008 12:17:23 PM (4387 views)
Re: AFX Corp. - Anita Backlund/MN
2/8/2008 11:19:26 PM (4236 views)

Payment from Richmond Title - Jeff Troutman/TN
1/28/2008 7:38:11 AM (3474 views)
Re: Payment from Richmond Title - Jessica Talley/NJ
1/28/2008 8:12:24 PM (4296 views)
Re: Payment from Richmond Title - Barbara Bennett/IN
1/28/2008 8:39:35 PM (4291 views)
Re: Payment from Richmond Title - Vikki Moffitt/GA
1/29/2008 8:31:24 AM (4361 views)
Re: Payment from Richmond Title - martha campbell/VA
2/4/2008 7:57:57 AM (4299 views)
Re: Payment from Richmond Title - Michaela Urban/OH
3/5/2008 5:44:25 PM (4485 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
3/14/2008 12:35:52 AM (3885 views)
Re: Payment from Richmond Title - Jean Allen/NC
4/1/2008 8:52:14 AM (3889 views)
Re: Payment from Richmond Title - Lindette Hendricks /PA
5/9/2008 4:33:29 PM (3698 views)




Goverment Lien - Howard Demps/FL
1/27/2008 8:00:55 AM (3395 views)
Re: Goverment Lien - Frances Myers/FL
2/4/2008 10:26:59 AM (3731 views)

Recidivist Statute Fails to Pass Connecticut Legislature - Kevin Ahern/CT
1/26/2008 8:49:06 AM (3310 views)
Re: Recidivist Statute Fails to Pass Connecticut Legislature - george Hubka/MI
1/26/2008 5:54:28 PM (4099 views)
3 strikes law already on books - Bobbi Shorthouse, Notary Public/CT
1/28/2008 10:39:01 AM (3974 views)
Re: 3 strikes law already on books - terry sutton/CT
2/6/2008 12:06:22 AM (3767 views)
Re: 3 strikes law already on books - Scott Perry/PA
2/6/2008 1:45:44 AM (3727 views)
Re: 3 strikes law already on books - Kevin Ahern/CT
2/6/2008 2:52:02 AM (3788 views)

Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2459 views)

Contemporary Realty Solutions - Virginia Capps/TN
1/25/2008 2:34:47 PM (3359 views)
Re: Contemporary Realty Solutions - Jessica Talley/NJ
1/25/2008 3:34:11 PM (4109 views)
Re: Contemporary Realty Solutions - Patricia  (Trish) Wagner/OR
1/28/2008 2:26:28 AM (3979 views)
Re: Contemporary Realty Solutions - Sherry Greene/MI
1/28/2008 8:52:14 AM (3976 views)
Re: Contemporary Realty Solutions - Dan Zook/NY
1/28/2008 9:02:36 AM (4012 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:01:42 PM (3826 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:03:56 PM (3823 views)
Re: Contemporary Realty Solutions - Virginia Capps/TN
2/7/2008 3:11:21 PM (3790 views)

GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2744 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4366 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (3900 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (3823 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (3645 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (3767 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (3728 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (3727 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (3854 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (3565 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (3654 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (3683 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (3637 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (3624 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (3718 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (3800 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (3547 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (3626 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (3683 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (6104 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (4292 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (4172 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 (4001 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (3986 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (6188 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (3897 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (4541 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (3919 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (3868 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (4092 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (3952 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (4014 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (3833 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (3950 views)

Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3287 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (3720 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (3561 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (3490 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (3583 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (3548 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (3462 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (3334 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (3415 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (3883 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (4187 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (3828 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (3744 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (3742 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (3608 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (3601 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (3599 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (3554 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (3535 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (3487 views)

Gotham Abstract - Sheila Sten/PA
1/23/2008 3:12:00 PM (2734 views)


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