MT311-02_Unit 8_Case Analysis_Marjorie Bowden

MT311-02_Unit 8_Case Analysis_Marjorie Bowden - corporate...

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Greg Allen Construction vs. Estelle Page 1 of 3 Greg Allen Construction vs. Estelle: Liability Marjorie Bowden MT311-02
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Greg Allen Construction vs. Estelle Page 2 of 3 The Estelle’s hired Allen’s firm to renovate a home they owned in Indiana. The Estelle’s obtained a line of credit from Banc One, which required periodic inspections to disburse funds. Allen was on the job daily and supervised the work being done. The Estelle’s found much of this work to be unacceptable, and the bank inspector agreed it was poor quality. When Allen failed to act on the Estelle’s complaints, they filed suit against Allen Construction and Allen personally, alleging in part that his individual work was negligent. Can both Allen and his corporation be held liable? In the case above, it is my belief that Allen’s firm should be held liable for the quality of work done. However, I am not totally sure whether Allen should individually be held liable. A
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Unformatted text preview: corporate officer or shareholder will generally not be personally liable for the torts of the corporation or of its other officers or agents merely by virtue of the persons office, the officer or shareholder may be personally liable for the companys torts in which the officer or shareholder has participated or which he has authorized or directed. I feel that a court would award the Estelles damages due to the fact that Allen Construction had breached its contract by performing substandard work and failing to correct and complete the work. The Estelles would have to have another company come in to correct and complete this project, and should receive damages for such. Greg Allen Construction vs. Estelle Page 3 of 3 References: Miller, R. L., & Jentz, G. A. (2008). Fundamentals of business law part I. Mason, OH: Cengage Learning....
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MT311-02_Unit 8_Case Analysis_Marjorie Bowden - corporate...

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