Article Archives >> Lead Stories >> April 16-30, 2008
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Directors Not Personally Liable
For Defaults Under Lease
“Economic loss rule” prevents
personal liability for contractual damages
Two directors of a nonprofit horse rescue organization cannot be held personally liable for damages resulting from the organization’s breach of a lease agreement, according to an appellate court in Washington. The individual defendants could not rely on a directors’ protection act, but the “economic loss rule” limits the landlord to contract remedies against the corporation, the Court held.
Article Archives >> Lead Stories >> April 16-30, 2008
