Question
Roger has formed a corporation for his new business (Cali Builder, Inc.), which is going to be building new apartments for low-income renters. He has
Roger has formed a corporation for his new business (Cali Builder, Inc.),
which is going to be building new apartments for low-income renters. He has
invested about $500,000 in the company. His other assets of about $5,000,000 are
invested in other companies in the stock market. Yesterday, one of his workers had
a terrible accident at the job site - a small crane that was lifting heavy metal flooring
plates up to the third floor of the new apartment building fell over and killed a
pedestrian walking nearby. Assume the family of the deceased pedestrian sues Cali
Builder, Inc. for "wrongful death" and wins a judgment for $3,000,000 against the
corporation. The corporation only has liability insurance for $1,000,000.
a. The family can legally collect on the balance of the judgment from Roger's other
assets, including his investments in the stock market.
b. Roger's investments in the stock market will be protected from this judgment.
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