Private Road Association

We are part of an private road association formed via an easement. There are only
11 members and the road is horrible condition. One member thinks that by
incorporating we can remove liability for all members due to the road condition. Is
that true?

Asked on September 4, 2018 under Real Estate Law, Tennessee

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Corporations are a way to protect people from personal liability.  That is why the one member is insisting on it.  Should the road be the responsibility of you personally then you could be sued personally and any assets held subject to judgement.  If the Association as a corporation owns the road only it's assets are subject to judgement.  Consider haveing the Assocaition as a corporation obtain liability insurance.  Consult an attorney on this.  It is a very important matter and the memeber is right to have you inquire.  Good luck.


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