Daniel and Sondra Estelle hired Allen’s firm to renovate a home they owned in Ladoga, Indiana. To
finance the cost, they obtained a line of credit from Banc One, Indiana, which required periodic
inspections to disburse funds. Allen was on the job every day and supervised all of the work. He designed
all of the structural changes, including a floor system for the bedroom over the living room, the floor
system of the living room, and the stairway to the second floor. He did all of the electrical, plumbing, and
carpentry work and installed all of the windows. He did most of the drywall taping and finishing and most
of the painting. The Estelles’ found much of this work to be unacceptable, and the bank’s inspector
agreed that is was of poor quality. When Allen failed to act on the Estelle’s complaints, they filed a suit in
an Indiana State court against Allen Construction and Allen personally, alleging in part that his individual
work on the project was negligent. Can both Allen and his corporation be held liable for this tort? Explain.
[Greg Allen Construction C. v. Estelle, 798 N.E.2d 171 (Ind. 2003)]
In responding to the question be sure to:
Analyze whether or not a director/officer can be held liable for the torts of the Greg Allen
Discuss whether or not the facts would constitute the type of act protected by the corporate entity
This question was asked on Oct 16, 2010 and answered on Oct 18, 2010.
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