Cal. Codes » Corporations Code / TITLE 4. SECURITIES / DIVISION 5. FRANCHISE INVESTMENT LAW / PART 4. ENFORCEMENT / CHAPTER 1. Civil Liability
California Codes

Cal. Corporations Code § 31302 (2026)

Civil Liability

✓ current as of May 2026
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Every person who directly or indirectly controls a person liable under Section 31300 or 31301, every partner in a firm so liable, every principal executive officer or director of a corporation so liable, every person occupying a similar status or performing similar functions, every employee of a person so liable who materially aids in the act or transaction constituting the violation, are also liable jointly and severally with and to the same extent as such person, unless the other person who is so liable had no knowledge of or reasonable grounds to believe in the existence of the facts by reason of which the liability is alleged to exist.

Notes of Decisions
Cited in 12 cases (5 in the last 5 years), 1987–2026 · leading case: A.J. Temple Marble & Tile, Inc. v. Union Carbide Marble Care, Inc., 663 N.E.2d 890 (N.Y. 1996).
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A.J. Temple Marble & Tile, Inc. v. Union Carbide Marble Care, Inc., 663 N.E.2d 890 (N.Y. 1996). · cites it 2× “The language in section 691 (3) in particular — nearly identical to that of the analogous California provision except for the comma (Cal Corp Code § 31302) [*] — closely parallels the 1934 Securities Act ( compare , General Business Law § 691 [3] ["A person who directly or…”
Thomson v. Anderson, 6 Cal. Rptr. 3d 262 (Cal. Ct. App. 2003). “” (Corp. Code, § 31302.) Thomson argues section 31302 would be “rendered nugatory as to out of state persons” if section 31420 were interpreted as a service of process statute.”
Neptune Soc'y Corp. v. Longanecker, 194 Cal. App. 3d 1233 (Cal. Ct. App. 1987). “Corporations Code section 31302 provides: “Every person who directly or indirectly controls a person liable under Section 31300 or 31301, every partner in a firm so liable, every principal executive officer or director of a corporation so liable, every person occupying a similar…”
Bencharsky v. Cottman Transmission Sys., LLC, 625 F. Supp. 2d 872 (N.D. Cal. 2008). “See Cal. Corp.Code § 31302. Thus, the franchise disclosure statutes enable the Franchisees to bring actions against [individual defendant] in this case without having to pierce the corporate veil.”
Dollar Sys., Inc. v. Avcar Leasing Sys., Inc., 673 F. Supp. 1493 (C.D. Cal. 1987). “Woody Francis and Dollar are jointly and severally liable pursuant to California Corporations Code § 31302. All other counterclaim defendants are DISMISSED.”
Cottman Transmission Sys., LLC v. Kershner, 492 F. Supp. 2d 461 (E.D. Pa. 2007). “See Cal. Corp Code § 31302 ; N.Y. Gen. Bus. Law § 691 (1); Wis.”
Dollar Sys., Inc. v. Avcar Leasing Sys., Inc., 890 F.2d 165 (9th Cir. 1989). “Liability of Caruso and Francis DSI contends that Caruso and Francis were unaware of those requirements of the California Franchise Investment Law that DSI violated and thus the imposition of individual liability pursuant to Cal.Corp.Code § 31302 (West 1977) was erroneous.”
Full Tilt Boogie, LLC v. Kep Fortune, LLC (C.D. Cal. 2023). · cites it 4× “” Cal. Corp. Code § 31302 (emphasis added).”
MRFranchise, Inc. & Mike Rafipoor v. P Stratford Ins. Co., 2024 DNH 093 (D.N.H. 2024). · cites it 2× “at 22; see also Cal. Corp. Code § 31302 (providing joint and several liability for “every principal executive officer or director of a corporation” held liable under § 31300 “who materially aids in the act or transaction constituting the violation”).”
Full Tilt Boogie, LLC v. Kep Fortune, LLC (C.D. Cal. 2022). “Cal. Corp. Code § 31302 . 3 The Full Tilt Parties submit evidence that the Bik Defendants qualify as 4 franchisors or individuals controlling the franchisor under these sections.”
Full Tilt Boogie, LLC v. Jeroen Bik (9th Cir. 2025). “Additionally, Cal. Corp. Code § 31302 makes control persons jointly and severally liable for relief flowing from a CFIL violation.”
Full Tilt Boogie, LLC v. Jeroen Bik (9th Cir. 2026). “Additionally, Cal. Corp. Code § 31302 makes control persons jointly and severally liable for relief flowing from a CFIL violation.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.