Tiller Construction Corp. vs. Nadler

1175 Words5 Pages
Michael Quijano
Business Law
Chapter 34
Case 34-1
Tiller Construction Corp. v Nadler
Tiller Construction Corporation entered into two contracts with Nadler, the CEO of Glenmar, where Tiller would do “the work” for Nadler at Westridge for $637,000 and the other for Tiller to do “the work” for Nadler at Cranberry for $688,800. Nadler agreed to be personally liable to Tiller for the payment of both contracts. When the job was done, Nadler refused to pay the remaining balance of $229,799.46 for the Cranberry project and a remaining balance of $264,273.85 for the Westridge project. So Tiller sued Nadler for the amount owed, plus interest, costs, and attorney’s fees.
Nadler Filed a motion to dismiss based on 7-301. In
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The court decided that Joe Alexander was personally liable for the debts but the court, however, refused to hold appellees, Avanell Looney and Rita Alexander, liable.
Robert L. Harris appealed declaring that the appellees were indeed liable as well.
The issue is whether the appelles, Avanell Looney and Rita Alexander, had acted for or on behalf of J&R Construction at the time of signing the contract. The act requires that, in order to find liability under 4-27-204, there must be a finding that the persons sought to be charged acted as or on behalf of the corporation and knew there was no incorporation under the Act.

Decision The trial court denied appellant judgment against appellees because he found appellees had not acted for or on behalf of J&R Construction.
The evidence showed that the contract to purchase appellant’s business and the promissory note were signed only by Joe Alexander on behalf of the corporation. Harris’ wife testified that appellees were not present when the contract was signed. Case 34-4
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