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Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2573 views)

Contemporary Realty Solutions - Virginia Capps/TN
1/25/2008 2:34:47 PM (3505 views)
Re: Contemporary Realty Solutions - Jessica Talley/NJ
1/25/2008 3:34:11 PM (4690 views)
Re: Contemporary Realty Solutions - Patricia  (Trish) Wagner/OR
1/28/2008 2:26:28 AM (4540 views)
Re: Contemporary Realty Solutions - Sherry Greene/MI
1/28/2008 8:52:14 AM (4512 views)
Re: Contemporary Realty Solutions - Dan Zook/NY
1/28/2008 9:02:36 AM (4572 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:01:42 PM (4391 views)
Re: Contemporary Realty Solutions - Constance Foye/VA
1/30/2008 4:03:56 PM (4360 views)
Re: Contemporary Realty Solutions - Virginia Capps/TN
2/7/2008 3:11:21 PM (4331 views)

GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2867 views)

Great Comebacks From American Patriots - David Bloys/TX
1/24/2008 4:52:36 PM (4600 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/24/2008 5:01:00 PM (4555 views)
Re: Great Comebacks From American Patriots - Jay Duncan/MO
1/24/2008 6:02:17 PM (4469 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 1:38:21 PM (4313 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 1:51:39 PM (4424 views)
Re: Great Comebacks From American Patriots - Jessica Talley/NJ
1/25/2008 3:43:10 PM (4415 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 3:48:01 PM (4367 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 4:06:02 PM (4528 views)
Re: Great Comebacks From American Patriots - Jarrod Clabaugh/OH
1/25/2008 4:16:38 PM (4226 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/25/2008 4:35:00 PM (4320 views)
Re: Great Comebacks From American Patriots - David Bloys/TX
1/25/2008 10:29:32 PM (4320 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/26/2008 1:52:13 AM (4288 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/25/2008 5:14:40 PM (4273 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 8:23:59 AM (4436 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 11:21:35 AM (4484 views)
Re: Great Comebacks From American Patriots - Kevin Ahern/CT
1/30/2008 12:55:04 PM (4187 views)
Re: Great Comebacks From American Patriots - Scott Perry/PA
1/30/2008 3:48:42 PM (4296 views)
Re: Great Comebacks From American Patriots - Dorothy Payne/NY
1/30/2008 12:02:13 AM (4355 views)

Mezzo Settlement Services - trish kerns/PA
1/24/2008 3:22:22 PM (6257 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
1/24/2008 4:09:41 PM (4937 views)
Re: Mezzo Settlement Services - Kevin Ahern/CT
1/25/2008 4:26:06 AM (4795 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 (4676 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/25/2008 2:20:55 PM (4652 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
1/25/2008 5:14:44 PM (6873 views)
Re: Mezzo Settlement Services - Justin Holzer/PA
2/26/2008 4:10:02 PM (4547 views)
Re: Mezzo Settlement Services - JENNIFER HOLZMAN/PA
1/30/2008 4:30:07 PM (5218 views)
Re: Mezzo Settlement Services - george Hubka/MI
1/30/2008 10:00:01 PM (4584 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 7:16:01 PM (4503 views)
Re: Mezzo Settlement Services - cynthia hoffman/PA
2/27/2008 6:51:07 PM (4755 views)
Re: Mezzo Settlement Services - trish kerns/PA
2/29/2008 11:28:14 AM (4598 views)
Re: Mezzo Settlement Services - Sheila Sten/PA
3/12/2008 11:33:27 PM (4643 views)
Re: Mezzo Settlement Services - trish kerns/PA
1/31/2008 8:33:35 PM (4502 views)
Re: Mezzo Settlement Services - Jason Sheppard/PA
2/4/2008 5:27:53 PM (4629 views)




Title Companies - J Nisonger/CA
1/24/2008 2:51:06 PM (3496 views)
Re: Title Companies - Robert Franco/OH
1/24/2008 3:29:58 PM (4289 views)
Re: Title Companies - J Nisonger/CA
1/26/2008 3:29:56 PM (4140 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 5:27:10 PM (4036 views)
Re: Title Companies - Jessica Talley/NJ
1/25/2008 6:36:26 PM (4165 views)
Re: Title Companies - Jason Sheppard/PA
1/25/2008 6:47:43 PM (4127 views)
Re: Title Companies - george Hubka/MI
1/25/2008 7:30:37 PM (4030 views)
Re: Title Companies - Patrick Scott/IL
1/26/2008 1:10:15 AM (3932 views)

One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 3:39:25 PM (3556 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/23/2008 7:08:22 PM (4480 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/23/2008 9:00:12 PM (4806 views)
Re: One Stop Real Estate Services, Inc - Pat/MI
1/24/2008 3:41:39 PM (4412 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/24/2008 4:55:38 PM (4345 views)
Re: One Stop Real Estate Services, Inc - Rebecca Warner/MI
1/28/2008 7:38:39 PM (4318 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/28/2008 8:43:47 PM (4206 views)
Re: One Stop Real Estate Services, Inc - Jessica Talley/NJ
1/29/2008 1:44:46 PM (4170 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/29/2008 7:12:42 PM (4209 views)
Re: One Stop Real Estate Services, Inc - CHAD BONDIE/MI
1/30/2008 9:38:06 AM (4162 views)
Re: One Stop Real Estate Services, Inc - Loretta Reed/MD
1/30/2008 10:53:11 AM (4137 views)
Re: One Stop Real Estate Services, Inc - george Hubka/MI
1/30/2008 11:11:12 AM (4057 views)

Gotham Abstract - Sheila Sten/PA
1/23/2008 3:12:00 PM (2867 views)

Global Title Reporting Services - J Nisonger/CA
1/22/2008 7:39:16 PM (2575 views)

ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 2:18:09 PM (5294 views)
Re: ValuAmerica - Wanda Steudel/OH
1/22/2008 3:03:11 PM (4866 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/22/2008 3:12:18 PM (4416 views)
Re: ValuAmerica - Scott Perry/PA
1/22/2008 3:43:18 PM (4530 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 8:05:13 PM (4614 views)
Re: ValuAmerica - Jean Allen/NC
1/22/2008 9:09:10 PM (4431 views)
Re: ValuAmerica - J Nisonger/CA
1/22/2008 10:32:17 PM (4494 views)
Re: ValuAmerica - Patrick Scott/IL
1/22/2008 10:52:28 PM (4556 views)
Re: ValuAmerica - Glenda Hodge/TN
1/22/2008 11:38:35 PM (4687 views)
Re: ValuAmerica - JOSEPH MARTINEZ/NM
1/23/2008 6:34:07 PM (4487 views)
Re: ValuAmerica - Glenda Hodge/TN
1/23/2008 9:15:31 PM (4301 views)
Re: ValuAmerica - PHILIP YIANILOS/VA
1/28/2008 7:17:12 AM (4409 views)
Re: ValuAmerica - Jennifer  Porter/FL
1/28/2008 9:53:04 AM (4398 views)

Ameristar - Douglas Hintzman/IA
1/22/2008 12:01:56 PM (3477 views)
Re: Ameristar - Lori Cassidy/CT
1/22/2008 4:58:00 PM (4326 views)
Re: Ameristar - KS/IN
1/23/2008 8:19:01 PM (4217 views)
Re: Ameristar - Jeff Troutman/TN
1/28/2008 7:31:40 AM (4302 views)

Question: Adjustable Rate Mortgages - Todd Mathews/FL
1/22/2008 11:28:20 AM (3175 views)
Re: Question: Adjustable Rate Mortgages - Ben Kohnen/WI
1/22/2008 12:28:49 PM (4357 views)
Re: Question: Adjustable Rate Mortgages - Rob  Robinson/PA
1/24/2008 12:18:07 PM (4087 views)
Re: Question: Adjustable Rate Mortgages - Jason Sheppard/PA
1/25/2008 6:52:07 PM (4098 views)

QUESTION -- billing practices, philosophy - Joe Ab/AZ
1/18/2008 1:39:35 PM (3226 views)
Re: QUESTION -- billing practices, philosophy - Jessica Talley/NJ
1/18/2008 6:43:29 PM (4390 views)
Re: QUESTION -- billing practices, philosophy - Joe Ab/AK
1/18/2008 11:25:56 PM (4384 views)
Re: QUESTION -- billing practices, philosophy - Jessica Talley/NJ
1/19/2008 11:37:33 AM (4327 views)
Re: QUESTION -- billing practices, philosophy - Dan Zook/NY
1/22/2008 9:14:13 AM (4247 views)

APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 8:24:59 AM (3934 views)
Re: APEX TITLE AND ESCROW - Kevin Ahern/CT
1/18/2008 8:35:04 AM (4688 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 8:44:07 AM (4619 views)
Re: APEX TITLE AND ESCROW - Kevin Ahern/CT
1/18/2008 8:59:44 AM (4549 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/18/2008 9:04:01 AM (4721 views)
Re: APEX TITLE AND ESCROW - Onondaga Abstract/NY
1/18/2008 1:03:25 PM (4576 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/22/2008 8:37:43 PM (4402 views)
APEX - NO ONE/AR
1/23/2008 8:25:47 PM (4437 views)
Re: APEX - Scott Perry/PA
1/23/2008 9:01:50 PM (4293 views)
Re: APEX - AN/AK
1/24/2008 2:49:22 AM (4364 views)
Re: APEX - AN/AK
1/24/2008 2:55:22 AM (4252 views)
Re: APEX - STEVE MEINECKE/TN
1/24/2008 12:14:08 PM (4377 views)
Re: APEX - Scott Perry/PA
1/24/2008 1:24:40 PM (4332 views)
Re: APEX - AN/AK
1/24/2008 2:35:47 PM (4248 views)
Re: APEX - Scott Perry/PA
1/24/2008 4:00:06 PM (4401 views)
Re: APEX - Jessica Talley/NJ
1/24/2008 5:13:58 PM (4275 views)
Re: APEX - J.T. Shoemaker/NY
1/24/2008 4:50:57 PM (4298 views)
Re: APEX - Scott Perry/PA
1/24/2008 6:07:28 PM (4261 views)
Re: APEX - an/AK
1/24/2008 9:39:01 PM (4226 views)
Re: APEX - J Nisonger/CA
1/25/2008 1:49:21 AM (4249 views)
Re: APEX - AN/AK
1/25/2008 7:51:30 AM (4163 views)
Re: APEX - Robert Franco/OH
1/24/2008 11:14:41 AM (4202 views)
Re: APEX - AN/AK
1/24/2008 2:33:48 PM (4299 views)
Re: APEX TITLE AND ESCROW - RICHARD DAVIS/TN
1/24/2008 1:20:38 PM (4262 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/24/2008 6:49:00 PM (4296 views)
Re: APEX TITLE AND ESCROW - J Nisonger/CA
1/25/2008 1:57:03 AM (9455 views)
Re: APEX TITLE AND ESCROW - george Hubka/MI
1/22/2008 8:35:26 PM (4302 views)
Re: APEX TITLE AND ESCROW - Constance Foye/VA
1/22/2008 9:30:01 PM (4219 views)

Kansas Abstractors, help? - Kansas Abstractor/KS
1/17/2008 9:59:49 PM (3183 views)
Re: Kansas Abstractors, help? - Jay Duncan/MO
1/17/2008 10:41:48 PM (4421 views)


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