Eric,Becky,and Brenda are all licensed medical doctors who form a professional corporation,Dr.Inc.,to practice medicine.They are the only shareholders.Eric negligently operates on a patient,George,seriously injuring him.George sues Dr.Inc.,Eric,Becky,and Brenda for malpractice.Assuming that the general rules of corporate liability apply,from whom may George recover?

Question

Quizplus · Accepted Answer

In a professional corporation, the general rule is that the shareholders are not personally liable for the corporation's debts or obligations, including any malpractice committed by a fellow shareholder. However, individual shareholders can be held liable if they personally participate in the wrongful conduct or if they are individually negligent.

In this case, it is clear that Eric was personally negligent in the operation that injured George. Therefore, George can recover from Eric. However, since Eric is a shareholder in Dr. Inc., George can also recover from the corporation itself.

Becky and Brenda are not individually responsible for Eric's negligence, and since they did not participate in the wrongful conduct or are not otherwise individually negligent, George cannot recover from them.

Eric,Becky,and Brenda Are All Licensed Medical Doctors Who Form a Professional