Thursday, November 21, 2013

African Bio-Botanica, Inc. v. Sally Leiner, T/A Ecco Bella case brief

African Bio-Botanica, Inc. v. Sally Leiner, T/A Ecco Bella case brief summary
624 A.2d 1003 (1993)


CASE SYNOPSIS
Defendant buyer sought review of decision by the Superior Court of New Jersey, Essex County, that defendant was personally liable for plaintiff seller's unpaid bill for merchandise. Defendant contended that the merchandise was delivered to a corporation and that the liability was solely that of the corporation. Plaintiff cross-appealed to challenge the superior court's denial of pre-judgment interest.

CASE FACTS
Plaintiff seller brought an action against defendant buyer to recover the unpaid purchase price of merchandise that plaintiff had delivered to defendant. The trial court held that defendant, not her corporation, was personally liable for the bill.

DISCUSSION
  • The court modified the judgment by the inclusion of interest from the date the complaint was filed, and affirmed. 
  • The court held that if defendant was acting as an agent for her corporation, she was an agent for an undisclosed or partially disclosed principal and that she was therefore personally liable on its purchase contracts. 
  • The court also held that the debt was fully liquidated and that defendant's obligation therefore included interest from the date the complaint was filed.

CONCLUSION
The court modified the judgment of the trial court by the inclusion of interest from the date plaintiff seller's complaint was filed against defendant buyer to recover the unpaid purchase price of merchandise. The court held that if defendant was acting as an agent for her corporation, she was an agent for an undisclosed or partially disclosed principal and that she was therefore personally liable on its purchase contracts.


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