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Harry Rich Corp. v. Feinberg
Florida District Court of Appeal
518 So. 2d 377 (1987)
Ira Feinberg (defendant) became president of Young Sophisticates Warehouse (Young Sophisticates) between August and November of 1984. Feinberg had been told that Young Sophisticates was formed by the previous company president’s son, who was an attorney. On November 15, 1984, Feinberg, on Young Sophisticates’ behalf, signed a contract with Harry Rich Corporation (Harry Rich) (plaintiff) to purchase carpet for Young Sophisticates. Later that month, Feinberg learned from his attorney that Young Sophisticates had never been incorporated. Young Sophisticates was then incorporated at Feinberg’s direction. A dispute later arose over the carpeting contract, and Harry Rich sued Young Sophisticates in Florida state court. Harry Rich learned during discovery that Young Sophisticates had not been incorporated when Feinberg signed the contract, so Harry Rich amended its complaint to add Feinberg as a defendant. After a bench trial, the trial court concluded that Feinberg was not personally liable. Harry Rich appealed, arguing that someone who signs a contract on behalf of a nonexistent corporation must be held personally liable on the contract.
Rule of Law
Holding and Reasoning (Pearson, J.)
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