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Corporations Keyed to O’Kelley
Joy v. North
Citation:
692 F.2d 880 (1982)Facts
While is is often stated that corporate directors and officers will be liable for negligence in carrying out their corporate duties, all seem agreed that such a statement is misleading. Whereas an automobile driver who makes a mistake in judgment to speed or distance injuring a pedestrian will likely be called upon to respond in damages, a corporate officer who makes a mistake in judgment as to economic conditions, consumer tastes or production line efficiency will rarely, if ever, by found liable for damages suffered by the corporation. The liability has rarely been imposed upon corporate directors simply for bad judgment.
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2m 27s