Teal Properties, Inc. v. Dog House Investments, LLC, Et Al.

The dispositive issue on appeal is whether co-owners of a limited liability company who signed a commercial lease agreement on behalf of the entity are personally liable for the lessee’s obligations when they signed the agreement twice: once on a line preceded by the text “By:” and followed on the next line by the text “Title:” and a second time on a line below which the signatory’s name was typed, followed by the word “Individually.” After the lessor filed suit against the lessee company and the co-owners individually to collect utilities and tax payments allegedly owed under the lease agreement, the co-owners filed a motion to dismiss for failure to state a claim on which relief could be granted, arguing that the lease contains no provisions that make them personally liable for the lessee’s obligations. The trial court granted the co-owners’ motion, and lessor appealed. We affirm.