Question
In October 2010, Sam's Drug Mart (Sam's) entered into a contract with Efficient Management Consulting Inc. to manage and pay utility bills for all of
In October 2010, Sam's Drug Mart (Sam's) entered into a contract with Efficient Management Consulting Inc. to manage and pay utility bills for all of Sam's stores across the country. Ms. Flemish is the sole shareholder, director, and officer of the incorporated company Efficient Management Conlusitng Inc. ("EffManage"). For some reasons, EffManage did not pay the utility bill for Sam's largest store in downtown Toronto despite repeated requests to do so by the utility company. As a result, Sam's utilities were shut off for two weeks and Sam's lost $200,000 in revenues because of EffManage's breach of its contractual obligations. Sam's wants to recover the $200,000 but knows that suing EffManage will be a waste of time; EffManage is a very new corporation and only has $5000 in assets. However, Ms. Flemish (the sole shareholder, director and offeicer of EffManage) is worth millions of dollars and would be easily be able to pay for the $200,000 in damages that Sam's suffered as a result of Effmanage's breach of contract.
Question:
a. Sam's will likely succeed if it claims damages directly against Ms.Flemish. YES OR NO?
b. Explain why and apply the law to the facts!
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