Liability of a Creditor in a Control Relationship with its…债权人与其控制关系的责任.pdfVIP

University of Arkansas · System Division of Agriculture NatAgLaw@ · (479) 575-7646 An Agricultural Law Research Article Liability of a Creditor in a Control Relationship with Its Debtor by K. Thor Lundgren Originally published in MARQUETTE LAW REVIEW 67 MARQUETTE L. REV. 523 (1984) www.NationalAgLawC LIABILITY OF A CREDITOR IN A CONTROL RELATIONSHIP WITH ITS DEBTOR K. THOR LUNDGREN· I. INTRODUCTION A creditor who, by virtue of loan agreements or the ac­ quiescence of its debtor, exercises substantial influence and authority over the business affairs of the debtor risks poten­ tial liability for all the debtors debts. Most of the leading cases which illustrate this principle are not widely known or discussed. Therefore, this article will analyze these cases in the hope that it will provide creditors and their counsel with the means to assure recovery of debts without incurring the inordinate risk that the creditor - in the clear and unerring perspective of judicial hindsight will be held liable to others for improperly exercising such control. The discus­ sion will also assist counsel by isolating factors which courts have found important in determining whether liability will be imposed. Potential liability arising out of a control relationship transcends the typical institutional lender-borrower loan ar­ rangement. Thus, the term creditor includes any person to whom a debt is owed, whether through a loan of money, sale of goods or otherwise and who, by virtue of the creditor­ debtor relationship, is in a position to exert control over the business affairs of a borrower. I