Also known as: individual liabilities · individually liable · personal liability
Written by attorneys · grounded in primary & secondary sources — see below
A form of liability that attaches directly to an individual for an obligation or wrong rather than being limited to an entity or imposed only through vicarious principles. The individual remains responsible even after transferring related property or interests unless an express release or statutory defense applies. Courts may disregard entity formalities to reach the individual's assets when unity of interest exists and injustice would otherwise result.
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Idina Iverson conveyed her mortgaged home to Ironwood Capital. The deed credited the mortgage balance against the purchase price but the mortgagee never executed a release of Idina. After default the mortgagee obtained a deficiency judgment against Idina personally because the transfer alone did not discharge her original obligation.
Ivan Ivanov formed Ideal Solutions as an undercapitalized shell that ignored corporate formalities and held no assets. When a creditor obtained a judgment against the shell Ivan's personal assets were reached because the entity was merely his alter ego used to avoid personal liability.
Isabelle Inman as president of Iris Energy approved shipments of misbranded drugs. The government prosecuted her individually for the statutory violation even though she acted through the corporation because the statute imposed direct responsibility on responsible corporate officers.
Imran Iyer a corporate officer of Ironclad Industries was sued under the Alien Tort Statute for aiding foreign human-rights violations. The court dismissed the claim against him individually because the statute does not extend to aiding-and-abetting liability for foreign conduct.
Ike Ingram a DEA agent was sued for damages after an allegedly unlawful arrest abroad. The court held that no private right of action existed against him individually under the Alien Tort Statute for the foreign conduct at issue.
Ian Iverson challenged a search that relied on an anonymous tip. The court upheld the warrant because the totality of circumstances supplied probable cause and did not require separate proof of the informant's individual reliability.
No. The transferor remains personally liable on the mortgage debt unless the mortgagee grants an express release or a suretyship defense applies.
Supporting sources
A court may disregard the corporate form when the entity is the alter ego of the shareholder and respecting the form would sanction fraud or promote injustice.
Supporting sources
…least two reasons, the exclusionary rule is a better remedy than a civil action against an offending officer. Unlike the fear of personal liability, it should not create excessive deterrence; moreover, it avoids the obvious unfairness of subjecting the dedicated officer to the risk of monetary liability for a misstep while endeavoring…