Megan A. McNamara is an attorney with the law firm Fox Rothschild LLP.  Megan practices in Fox Rothschild’s Litigation department in West Palm Beach, Florida.  Megan focuses her practice on commercial and business litigation throughout Florida. You can reach Megan at (561) 804-4445 or mmcnamara@foxrothschild.com

A corporation is a legal entity separate and distinct from its shareholders.  The corporate form generally shields shareholders from personal liability for the corporation’s debts.

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However, shareholders cannot incorporate to limit their liability, and then use the corporate form to cover their fraud.  Under such circumstances, a party may seek

In Florida, the economic loss rule previously prevented parties who allocated their risks and remedies in a contract from bringing a tort action.  For many years, the economic loss rule only applied in two circumstances:

  1. When the parties negotiated remedies in a contract, and
  2. In products liability cases, when the defective product damaged only itself