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Laya v. Erin Homes, Inc.

177 W.Va. 343, 352 S.E.2d 93 (1986)

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Laya v. Erin Homes, Inc.

West Virginia Supreme Court of Appeals
177 W.Va. 343, 352 S.E.2d 93 (1986)

Facts

Michael Ferns and Lawrence Finneran (defendants) were the only incorporators and the only shareholders of Erin Homes, Inc. (the corporation) (defendant). The corporation, which was severely undercapitalized, sold a mobile home to John and Thelma Laya (plaintiffs) but failed to deliver the home as promised. The Layas sued the corporation, Ferns, and Finneran for breach of contract. The trial court dismissed the claims against Ferns and Finneran, reasoning that as individual shareholders, the two men had no personal liability for the corporation’s breach of contract. The Layas appealed.

Rule of Law

Issue

Holding and Reasoning (McHugh, J.)

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