Hahn & Hupf Construction, Inc. v. Highland Heights Nursing Home, Inc.

The plaintiffs, all contractors, in a suit arising out of the breach of construction contracts by the owner, Highland Heights Nursing Home, Inc., a bankrupt corporation, sought recovery from the individual directors.

The theory of plaintiffs’ recovery was (1) false and fraudulent representations made by the directors individually to the plaintiffs; (2) acts committed by the individual directors in permitting the plaintiffs to proceed with construction when the directors knew, or should have known, the corporation was insolvent, amounting to misfeasance and malfeasance in the breach of a…