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Brothers Adam, Ben, and Charles Dawson are the sole shareholders of Dawsons, Inc., which operated Dawsons Restaurant. The law firm of Fenton & Fenton represented
- Brothers Adam, Ben, and Charles Dawson are the sole shareholders of Dawsons, Inc., which operated Dawsons Restaurant. The law firm of Fenton & Fenton represented Dawsons, Inc. in a suit against another restaurant. Dawson Inc. refused to pay the law firms fees after the suit was lost. Subsequently, the Fenton & Fenton firm sought a judgment against Dawsons Inc. for unpaid fees.
- Discuss the firm's options for recovering their money. Consider the following to guide your response:
- Can the Dawson brothers be held personally liable for Dawson Inc.s attorney fees?
- Is there a basis to argue that the Dawson brothers misled the firm about whether they or Dawsons Inc. would pay the firms fees? If so, does that justify piercing the corporate veil?
- What steps would the parties have to take to eliminate the limits to the liability of shareholders for corporate debts?
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