Coopers & Lybrand v. Fox

758 P.2d 683 (1988)

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Coopers & Lybrand v. Fox

Colorado Court of Appeals
758 P.2d 683 (1988)

  • Written by Haley Gintis, JD

Facts

In early November 1981, Garry J. Fox (defendant) requested accounting services from Coopers & Lybrand (Coopers) (plaintiff). Fox met with a Coopers’s representative and informed the representative that he was acting on behalf of G. Fox and Partners, Inc. (corporation). Fox also informed the representative that the corporation had not yet been formed. The representative accepted the work requested by Fox. By mid-December, Coopers finished the work and billed both Fox and the corporation, which Fox had incorporated on December 4. However, Coopers never received the payment. Coopers sued Fox for the $10,827 owed on the ground that Fox was the corporation’s promoter and therefore personally liable for the amount owed. Fox argued that the corporation was Coopers’s client and that Coopers agreed to solely seek payment from the corporation. The trial court found that Coopers did not provide evidence of any express or implied agreement between Coopers and Fox concerning Fox’s individual liability. Therefore, the trial court held that Fox was not individually liable for the amount owed. The matter was appealed.

Rule of Law

Issue

Holding and Reasoning (Kelly, C.J.)

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