Lashundra Jones_LS311_Unit 8 Analysis

Lashundra Jones_LS311_Unit 8 Analysis - all was performed...

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Held Liable 1 Unit 8 Analysis: Can A Director of A Corporation be Held Liable Lashundra T Jones Kaplan University LS311-03 Professor Thompson February 27, 2011
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Held Liable 2 The law concerning officer and director liability in tort, while expanding the bases upon which liability may be found requires, generally, a finding of actual participation by the officer or director in the tortuous conduct. That is, generally, a director or officer of a corporation does not incur personal liability for torts of the corporation merely by reason of their official position, unless they participate in the wrongdoing or authorize or direct that it be done (Yokasmith.com, 2011). Give this, it is clear to see that Greg Allen was directly apart of the wrong doing and should be held liable for the tort. However Allen was acting as an agent of his company and the contract itself was between Allen Construction Company. So whatever negligence is attributed to
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Unformatted text preview: all was performed in the course of his duties as an employee of the corporation. So if he was liable in negligence, then so is his principal, the corporation and would turn a breach of contract claim into a negligence claim, but this is not the case. If you think about the type of loss that the Estelles encounter it would be only an economical loss due to the fact of the interest on the loan from the bank as well as the extra money needed to repair the faulty work that Allen did. No one was harmed in the wrong doing of Allens company. So I do not feel that they should be able to expand the breach of contract into a tort claim against either the principal or its agents by claiming negligence as the basis of the breach. Held Liable 3 Reference Yokasmith.com, (2011), Points of Law, Officer and Director Liability, Retrieved on February 27, 2011 from: http://www.yokasmith.com/poinContent.php?page=3...
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Lashundra Jones_LS311_Unit 8 Analysis - all was performed...

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