Theresa Baggett, a masonry contractor, was sued by union pension and health plans for unpaid contributions. The court issued a default judgment against her personally, but the appeals court voided it. The ruling: a corporate officer who signs contracts in her official capacity on behalf of the corporation cannot be held personally liable unless the lawsuit specifically alleges corporate fraud or veil-piercing. This protects business owners from personal liability when acting in their corporate role.
If you sign contracts as an officer of your corporation, you're generally protected from personal liability—the corporation is the responsible party, not you individually