Trust Lawsuits Involving a Loan
When is somebody personally responsible or individually liable for a loan?
Trust lawsuits involving a loan. When is somebody responsible for borrowing money when the promissory note or the court document has different legal capacities? When is somebody personally responsible or individually liable for a loan?
My name is John Pankauski, you know the lawyers and appellate attorneys at Pankauski Hauser spend a lot of time litigating about money lent, loans between a decedent and somebody else or beneficiary of a trust or an estate. A very recent case April 6th 2018 that was handed down by Florida 2nd District Court of Appeal involves Trustees a Corporation an officer of the corporation and somebody who signed a loan in an individual capacity. This case stands for the proposition that if you’re out there signing documents, making loans or doing anything else, the capacity in which you sign that document, the capacity in which you borrow that money or lend that money is very very important. This case is Agai vs Ossi, the case number is 2D16-4659. You can read it free online at the 2nd Second District Court of Appeal, on their website when you click on opinions.
Why was this case so important? Well a lot of you probate lawyers out there a lot of you estate planning lawyers create documents such as loan documents and other documents between corporations and shareholders and presidents and trust and estates and beneficiaries and maybe trustees.
This involves a revocable trust in a corporation and somebody signed a loan document with two signature blocks, one in their representative capacity on behalf of a corporation, one in their individual capacities. And the question was, is this person responsible personally individually responsible for the loan. There was an argument that he didn’t know that he signed it in his individual capacity. There were allegations of fraud. There were allegations that he didn’t know what he signed. That he didn’t see what he signed and there was testimony both pro and con. So, if you are drafting documents and somebody has a representative capacity as a trustee or an officer of a corporation, know whether there is individual liability or not and know how draft your documents with the right signature blocks.