Please refer to the attachment to answer this question. Thi
Please refer to the attachment to answer this question. This… QUESTION: John Hildreth was the sole shareholder, director, and officer of a New Jersey corporation, HCE Inc., also referred to as HCE-NJ. Engaged in the construction business, HCE-NJ began to do business in Columbia, Maryland. However, Hildreth did not register HCENJ as a foreign corporation in Maryland, as required by Maryland law. In September 1998, HCE-NJ and Tidewater entered negotiations for the long-term rental of a crane that HCE-NJ intended to use in connection with a construction project in Alexandria, Virginia. Hildreth made clear to Tidewater that he was acting for HCE, but neither said nor was asked where that company was incorporated. He informed Frank Kolbe, a Tidewater representative, that the company had an office in Columbia, Maryland. Kolbe visited both the Columbia office and a job site. He testified that the company “didn’t appear to be a fly-by-night operation,” but had “a nice office suite” and “numerous employees.” The job site was also substantial, with “a huge warehouse,” a rail siding, and “hundreds of metal building panels.” Kolbe assumed that HCE-NJ was a Maryland corporation because it had an office in Columbia. Tidewater and HCE-NJ signed a series of daily contracts. Hildreth did not sign the contracts, which were signed on behalf of HCE-NJ by some other employee. When payments were not made in late 1998 and early 1999, Tidewater repossessed the equipment. At the time, Tidewater was owed $47,246. Tidewater sued Hildreth on the grounds Hildreth was personally liable for the debts incurred by HCE-NJ because the corporation failed to qualify to do business in Maryland and that otherwise HCE’s corporate veil should be pierced. Was Hildreth found personally liable?Social Science Law DBA 301 Share QuestionEmailCopy link This question was created from CHAPTER 17.pdf Comments (0)
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