Greg Allen Construction Co. v. Estelle
Indiana Supreme Court
798 N.E.2d 171 (2003)
- Written by Sharon Feldman, JD
Facts
Daniel and Sondra Estelle (the Estelles) (plaintiffs) contracted with Greg Allen Construction Co. (Allen Construction) (defendant) for renovations to the Estelles’ home. Greg Allen (defendant) was Allen Construction’s president, shareholder, and employee. Allen signed the contract; did the electrical, plumbing, and carpentry work; and supervised other work. The Estelles sued Allen Construction and Allen for breach of contract and negligence, claiming the renovation work was substandard. The Estelles alleged that Allen Construction breached its contract by failing to complete the work on schedule, using materials and doing work of poor quality, and failing to meet construction-code requirements and construction-industry standards. The Estelles sought damages for interest charges on their construction loan and the cost to repair and complete the work. The trial court found that Allen was not individually liable because he was acting as Allen Construction’s president and employee. Reversing, the Indiana Court of Appeals held Allen personally liable because he participated in and supervised the negligent work. Allen appealed.
Rule of Law
Issue
Holding and Reasoning (Shepard, C.J.)
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