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Johnson v. Colip

Indiana Supreme Court
658 N.E.2d 575 (1995)


In 1983, Gary Colip (defendant) was hired as an attorney for a company that was in the process of incorporating. Colip’s duties included the drafting of the company’s prospectus. Colip also attended shareholder meetings to answer questions regarding the prospectus. In 1985, Allen and Li Yen Johnson (plaintiffs) brought suit against Colip, alleging that the prospectus for the company contained several misrepresentations in violation of the Indiana Securities Act, Ind. Code § 23-2-1-1 et se. (1982 & 1983 Supp.). The trial court granted Colip’s motion for summary judgment. The court of appeals reversed, stating that Colip became an agent when he began answering questions regarding the prospectus. Colip then petitioned for certiorari to the Indiana Supreme Court.

Rule of Law


Holding and Reasoning (Sullivan, J.)

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