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Honegger's & Co. v. Frog Valley Farm Services, Inc.

Michigan Court of Appeals
Jul 2, 1980
98 Mich. App. 568 (Mich. Ct. App. 1980)

Opinion

Docket No. 46148.

Decided July 2, 1980.

Harrison Law Offices, P.C. (by Charles E. Herman), for plaintiff.

William L. La Bre, for defendants.

Before: M.F. CAVANAGH, P.J., and R.M. MAHER and D.F. WALSH, JJ.


Plaintiff appeals as of right from a judgment of no cause of action denying its claim that an officer of a corporation is personally liable for monies owed on a promissory note executed after automatic dissolution of the corporation pursuant to MCL 450.1922(1); MSA 21.200(922).

The facts of the case are not in dispute. On May 15, 1978, defendant corporation was automatically dissolved for failing to file the requisite annual reports. On July 10, 1978, an officer of defendant corporation signed a promissory note for a preexisting debt in the corporation's name. The issue to be decided is whether this officer becomes personally liable on the note.

MCL 450.1833; MSA 21.200(833) states:

"Except as a court may otherwise direct, a dissolved corporation shall continue its corporate existence but shall not carry on business except for the purpose of winding up its affairs by: * * * (c) Paying its debts and other liabilities."

Thus, it is clear that an officer does not encounter personal liability when paying the debts of his dissolved corporation. Alternatively, this debt clearly having been incurred prior to dissolution, no personal liability therefore should attach. See Null v Biogco, Inc, 20 Mich. App. 220, 223; 173 N.W.2d 802 (1969).

Affirmed. Costs to appellee.


Summaries of

Honegger's & Co. v. Frog Valley Farm Services, Inc.

Michigan Court of Appeals
Jul 2, 1980
98 Mich. App. 568 (Mich. Ct. App. 1980)
Case details for

Honegger's & Co. v. Frog Valley Farm Services, Inc.

Case Details

Full title:HONEGGER'S CO, INC v FROG VALLEY FARM SERVICES, INC

Court:Michigan Court of Appeals

Date published: Jul 2, 1980

Citations

98 Mich. App. 568 (Mich. Ct. App. 1980)
296 N.W.2d 314

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