TBB

29 March 1993 (1993)

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TBB

Germany Federal Court of Justice
29 March 1993 (1993)

Facts

A husband (defendant) and wife collectively and separately operated several companies involved in construction projects. One of the companies was a closely held corporation (the corporation) (defendant) for which the wife was the sole shareholder and the husband the sole director. The corporation entered into a construction contract with another company (the contractor) (plaintiff). When the construction project was nearly complete, the corporation could not pay the contractor for the services rendered due to insufficient funds. The contractor sued in the regional court and prevailed, with the court finding that the husband was personally liable for the debt because the husband dominated and controlled the corporation in a manner adverse to its shareholder, making the corporation unable to pay its bills. The husband appealed, but the appellate court ruled against the husband. The husband again appealed to the Germany Federal Court of Justice. [Editor’s Note: The Germany Federal Court of Justice is Germany’s highest civil and criminal jurisdiction court.]

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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