Austin v. Tire Treads, Inc.

VAUGHN, Judge.

Defendant argues that his motion for a directed verdict should have been granted. We agree. Although personal liability may be imposed on a corporate officer for fraudulently misrepresenting a company’s financial condition to one dealing with the company provided that party suffers a loss as a result of reliance on the misrepresentation involved, see Mills Co. v. Earle, 233 N.C. 74, 62 S.E. 2d 492, plaintiff failed to establish a prima facie case. Actionable misrepresentation consists of (1) a representation of a material fact, (2) which was false, (3) which was either known to…