Two attorneys, Scott and Randle, share a law office and each person pays 1/2 of the rent, utilities, and other bills. Sometimes Scott and Randle work together on cases and they frequently share in profits and losses. Scott and Randle don't consider themselves to be any form of business organization. In a recent case, Scott represented a woman in a domestic relations case and the woman was not satisfied with his representation. Scott forgot the woman's name several times during the trial and wasn't familiar with the facts of the case. As a result, the woman lost custody of her child and was ordered to pay child support. The woman filed a law suit seeking damages.
Which of the following statements regarding the hypothetical scenario above is most correct?
- There is no way Randle could be held liable.
- If the court determines that a partnership exists, then Randle may also be liable.
- Randle and Scott have a defacto corporation and the woman should be able to pierce the corporate veil.
- Randle and Scott have formed an implied Limited Liability Company and neither will be personally liable for any damages