10/19/2019
PREDICT THE VERDICT
Bob is the owner of Bob’s Contracting Inc.
Bob’s Contracting Inc. is hired by Joe.
Bob’s Contracting Inc. is hired for a $50,000 project.
Bob’s Contracting Inc. requires a deposit from Joe.
Bob’s Contracting Inc. receives a $5,000 from Joe.
Joe writes a $5,000 cheque payable to Bob’s Contracting Inc.
Bob takes the cheque to the bank.
Bob deposits the check into the general operating account of Bob’s Contracting Inc.
Later, after some unanticipated and unforeseen difficulties, Bob’s Contracting Inc. goes bankrupt and out of business.
Bob is without blame for the unanticipated and unforeseen difficulties which bankrupted Bob’s Contracting Inc.
Bob contacts Joe.
Bob provides advisement regarding the unforeseen difficulties that bankrupted Bob’s Contracting Inc.
Bob explains that due to the bankruptcy, Bob’s Contracting Inc. will be unable to refund the deposit previously provided by Joe.
Joe personally sues Bob.
Joe should win in a lawsuit brought personally against Bob because:
A. Owners of a company are always liable for debts.
B. Owners of such a company must put deposits into a trust.
C. Owners of a company are always crooks of some sort.
D. Owners of a company are all of the above.
Unsure? Read this:
Breach of Trust as Cause of Action Brought Personally Against Directors of Contracting Corporations Failing to Hold Deposits Within a Separate Trust Account | Construction Law, Tort Law, Real Estate Disputes, Provincial Offences, Consumer Law, Business & Commerce, Residential Tenancies, Contract Law...
