Legal Question in Business Law in Texas

Malfeasence by employee-stockholder (over 5% owner)

What liability exists for employee, who lied & misled customers, management, & owners of corporation (private). Events are documentable,(including signed resignation letter admitting his actions), & have caused damaged company with clients (other corps). One injured party a Dept of Defense contractor was lied to about status of order for wiring to be used by military. 3rd party has indicated they have applied to DOD for T for D (termination for default) & significant penalty may be assessed, which will pass on to us. Note individual who perpetrated situation a 5%+ equity holder corp in key position whereby he lied about delivery & price of items sold in DOD contract. When discovered, he resigned, stating he lied re price & delivery & "made-up" information & forwarded it to client. Refuses to cooperate & talk regarding his actions in matter or other matters involving his performance or lack thereof regarding responsibilities and duties.


Asked on 5/17/98, 8:33 am

1 Answer from Attorneys
Basil Landon Hoyl, Jr. Law Office of Basil Hoyl - Safeco Land Title

The man lied and cost the company money

If the individual has assets, you may desire to bring an action for damages. If he has no significant assets, then you may wish to reconsider.

This message does not constitute the hiring of this lawyer for any purpose. It is general information only and you should REALLY seek legal counsel immediately and hire them and pay them if you want legal information for your specific matter. This should merely be taken as general information for you to begin your research so that you will be better informed when you consult your lawyer.

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Answered on 6/11/98, 5:09 pm


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