False Statements Can Generate Personal Liability

Kegler Brown Construction Law Newsletter

Many in the construction industry, and the practitioners serving it, do not appreciate that false statements made by an officer or employee of a corporation with an intent to deceive can result in personal liability for the person making the false statement or entry.

For example, someone falsely signing a lien waiver or lien affidavit on behalf of a corporation may be incurring personal liability. Even someone issuing a false invoice or business record knowing it to be false is at risk for personal liability (O.R.C. §1701.93).

This statute can be utilized to hold individuals accountable for false statements made on behalf of a corporation that may otherwise be uncollectable.