Consumer Law, Warranties defaulting on construction projects

[joe_cool]

I'm a General Contractor and am currently involved in several large projects on long Island. I sgned a contract and left a security deposit of 10% or 61K. If I default or get thrown off the job the contract states they can keep my security deposit to finish the job. And if the job cost's more than my security deposit to complete they can go after the contractor for the difference. My question is this. My company is an S corp in New York State. If I default can I become personally liable.

 

[lwpat]

If you are a General Contractor and can afford to bid a 610,000 project then you can afford an attorney to review your contracts before you sign and advise you of your rights. Generally an S Corp protects the individual but there have been cases where the corporate veil was pierced.

 

[joe_cool]

piercing the veil

Dear Iwpat
Is piercing the veil something that is easily done by the plantiff or is it something difficult and costly.

 

[mike]

Dear Iwpat
Is piercing the veil something that is easily done by the plantiff or is it something difficult and costly.

It all depends. If the company is merely being used as a shell to protect the individual, then it can be done. The more evidence there is that the company is just a shell or that you have commingled personal money with the corporation the more likely the veil can be pierced. Either way, if they sue you personally you'll still have to spend time and money defending yourself. I'm not sure it's something you want to deal with if you can avoid it.