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Professional Liability Blog

We explore and analyze current issues and relevant topics to help accountants, attorneys, architects and engineers, insurance agents and real estate brokers avoid a professional liability case.

Professional Liability Blog
October 4, 2019

Edson v. Fogarty - Broker Can Be Liable to Purchaser for Misrepresentation of Fact, Regardless of Reliance, Where Purchaser Could Not Have Discovered Misrepresentation on Its Own

This article discusses a decision by the 1st District of the Illinois Court of Appeals clarifying the law on when a broker can be liable for negligent misrepresentations during the sale of property and held a broker liable for misrepresentations made about the zoning of property.

Professional Liability Blog
May 12, 2017

When Things Go South: A Corporate Director’s or Officer’s Personal Liability to Third Parties for Corporate Misdeeds

Generally, corporate officers and directors do not have a special relationship of trust (i.e., a fiduciary relationship) with third persons or creditors transacting business with the corporation. Moreover, unless they sign in an individual capacity, corporate officers and directors who negotiate and execute a contract on behalf of the corporation are not personally accountable on the contract, even if the corporation later defaults or otherwise breaches the contract. Likewise, corporate officers and directors will not be personally liable for the debts of the corporation, even if involved as an agent of the corporation in undertaking the debt.