Individual Denied Standing to Sue for Corporate Services Rendered
📌 In brief
In a recent Civil Resolution Tribunal case, an individual tried to claim payment for interior design services provided through her corporation. The court ruled that the individual could not claim payment personally since the services were performed by her business.
⚖️ Legal holding
An individual cannot claim payment for services performed by their corporation unless they are acting in their personal capacity and not as a corporate representative.
📖 Technical summary
The claimant, an individual, lacked standing to claim payment for services rendered through her corporation.
📚 Full judgment
The summary, holding and questions above are VadeLab’s own material. The official decision itself is published by the court, and we do not reproduce it on this page.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The contract was between the corporation and the respondent, not the individual.
- The applicant performed the work as the principal of the corporation, not in her personal capacity.
- The respondent made payments to the corporation, not the individual.
- The corporation is a legally separate entity from the individual, and thus the individual lacks standing to claim payment on behalf of the corporation.
- Amending the Dispute Notice to include the corporation as an applicant at this stage is not justified due to the lack of extraordinary circumstances.
❌ Tends to be rejected
- The applicant attempted to claim payment for services performed by her corporation in her personal capacity.
- The applicant argued she had standing to sue in her personal capacity despite the work being performed by her corporation.
- The applicant tried to argue that the corporation and herself were not separate legal entities.
- The applicant claimed she could pursue the claim personally since she is the sole representative of the corporation.
- The applicant requested to amend the Dispute Notice to add the corporation as an applicant, which was denied due to procedural rules.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The court decided that the claimant, an individual, lacked standing to sue for payment of services rendered through her corporation.
What was the dispute about?
The dispute was about whether an individual could claim payment for services provided through their corporation.
How did the court decide, and why?
The court decided against the claimant because the services were performed by the corporation, not the individual.
Which laws or rules were applied?
No specific laws or rules were applied in this decision.
What was the argument that mattered most?
The argument that mattered most was that the services were performed by the corporation, not the individual.
Was the decision for or against the person who brought the case?
The decision was against the person who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure that they are claiming payment in the correct capacity, either as an individual or as a representative of their corporation.
What evidence or documents mattered?
The evidence and documents that mattered were the fee proposal and invoice issued by the corporation, not the individual.