Corporate Shield Only Extends So Far

business law and litigationThe notion that a corporate officer cannot hide behind their corporate shield when they have themselves committed a tort, was recently reaffirmed in Karasavas v. Gargano, 87 Mass. App. Ct. 1125, 31 N.E.3d 1191 (2015).

In this case, the Court reasoned that “because ‘[a] corporation is a creature of the law,’ which can only act through its agents, ‘a corporate officer cannot evade personal liability for a tort that he himself committed.’

Plainly, a corporation does not protect its officers / owners / shareholders from personal liability if that officer / owner / shareholder commits a tort that causes damages to another. Although not necessarily at issue in this case, the same applies to limited liability companies a well – a fact few people realize. This presents significant legal issues for single officer / shareholder corporations and single manager / member limited liability companies (“LLCs”).

The Business Attorneys at The Jacobs Law LLC advise clients of the potential personal liability that can be imposed on owners, shareholders, officers, managers and/or members of various registered entities and can assist and advise in methods of risk mitigation.

If you are looking to form a business in Massachusetts, the Boston Business Lawyers at The Jacobs Law LLC can help! Contact us today at BUSINESS@THEJACOBSLAW.COM or 800-652-4783 or complete the form below and we will contact you as soon as possible.

YOUR ATTORNEYS FOR BUSINESS REGISTRATION

Boston Business Litigation Lawyers

You have exceeded the number of permitted submissions. If you require legal assistance, please call our office directly at 1-800-652-4783. Thank you.