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October 2015 Archives

Windrush, Inc, v Lee Van Poppering, Shagbark Development, Inc, and Northland Management, Inc

The Michigan Court of Appeals recently affirmed personal liability for violations under the Michigan Builders Trust Fund Act, MCL 570.151 et seq. ("MBTFA") in Windrush, Inc, v Lee Van Poppering, Shagbark Development, Inc, and Northland Management, Inc, unpublished opinion per curiam of the Court of Appeals, issued September 10, 2015 (Docket No. 315958). The building contractor's sole shareholder was responsible for financial decisions, and regardless of his "subjective intent to defraud or obtain personal financial benefit," the individual was held personally liable for the debt due his subcontractor. The building contractor received funds due to the subcontractor for proper work performed and materials supplied, but utilized those funds for purposes other than to pay the subcontractor. The sole shareholder was held personally liable because "he managed all of the relevant transactions and accounts," and he was responsible for the building contractor's "financial decisions and actions."

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