Greg Allen is an employee, shareholder, and director of Greg Allen Construction Co., and its president. In 1996, 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 before it would 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 it was of poor quality. When Allen failed to act on the Estelles’ 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.

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May 2, 2012

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