Crews & Hancock, P.L.C. v. RKR Health Management, Inc.

By Judge Randall G. Johnson

The court took this case under advisement after the presentation of evidence on May 9 to further consider the individual defendants’ plea of the statute of frauds and the consequences of the individual defendants’ failure to properly “wrap up” the affairs of the corporation. Having now considered those matters further, the court rules that the individual defendants are not liable for the corporate debt.

I. Statute of Frauds

The statute of frauds, codified in Virginia as Va. Code § 11-2, provides that a promise to pay the debt of another cannot be enforced unless in…