Corporate Officers May Become Liable For Negligent Acts
Law360, New York ( March 27, 2014, 5:52 PM EDT) -- In July 2013, the decision of the Court of Appeals for the Federal Circuit was announced in United States v. Trek Leather Inc. and Harish Shadadpuri, Case No. 2011-1527 (July 30, 2013). Harish Shadadpuri was the president and sole shareholder of Trek Leather. The question before the appellate court was whether, in the absence of any specific allegations against him personally, Shadadpuri could be held liable for the gross negligence of Trek. The appellate court held no, but both the Federal Circuit and Shadadpuri conceded there were other legal bases on which he could be held liable, even as the government declined to pursue those other options. The Federal Circuit has now granted an en banc hearing to reconsider that decision, which is generating significant concern on many fronts....
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