Parties: Hayes -Plaintiff
Collins - Defendant
Cause of Action: Emotional Distress and Loan repayment
Facts: Hayes’ husband loaned Corporate Staffing solutions.
Amount loaned is $33,500 to Jennifer Collins’ company by the late Lisa Hayes’ husband.
Two checks were made by Mr. Hayes which were payable to the Corporation and the third one payable to himself.
The loan terms were not written down and the deadlines for repayments were not established.
There is also the issue of adulterous relationship between Lisa’s late husband and the president of the Corporation.
The trial court granted judgment summary to Collins for repayment of the loan which in turn Hayes appealed.
Issue: Whether Jennifer Collins should take personal responsibility for the loan given to her company by the Late Lisa Hayes. And also take responsibility for emotional distress suffered by Lisa due to the defendant’s adulterous relationship with Lisa’s husband.
Held: Yes
Rule of law: The court of appeal ruled that one cannot pay for any damages for emotional distress, if there is invasion of ones privacy. And also one is not entitled to repayment of a loan which was borrowed for the company and not for their own use.
Reasons: The loan was given to the corporation while Jennifer Collins and not to her personal use.
There would have been invasion of the defendant’s privacy by the plaintiff
The corporation as an entity is the one responsible for the repayment of the loan.
Hence, Lisa Hayes cannot prove that the one to repay the loan is Jennifer Collins just because she is the President of the corporation. So, Lisa is disqualified from recovering damages from Jennifer Collins.
