Defend ourselves in a case against company & 2 individuals (3 defendants)?

[ricardoumbro]

New York State

We have a breach of contract case against [Company, Individual 1, Individual 2].

The note was signed by two individuals in exchange for a previous company assets, and the note states both parties are both severally liable for the payment. Now the other party is suing all 3 parties, the company and the two individuals.

When we go to Supreme court, can we defend ourselves? The judge already sent us back from preliminary conference stating that we must have a lawyer, but that's because the plaintiff listed company first when starting the case, but it is followed by individuals (same index no has all 3)

One of the individuals does not even work for the company anymore, can we go back to court on the next day and defend ourselves.

 

[tranquility]

I wouldn't do anything until you clarify the judge's order, but you can defend yourself. You can't defend the company, for that you need an attorney. As a side note, for a fairly simple situation to describe accurately, it took me three reads to even hazard a guess about who and what you were talking about. Legal briefs are far more complex and, unless you have some reason for the poor description here, you are going to get creamed when you have to submit your argument to the court.

 

[ricardoumbro]

Sorry about the messy explanation.

Let me see if I can make it a bit clearer although you answered me.

The case is for $50k which two individuals signed a note in return for one certain company's phone lines and "good will" along with a few accounts that needed to run the business.

New company was established and used previous company's phone lines to conduct the business (after transferring them to new co's name)

Shortly after this due to several reasons individuals stopped making the payments to owner of previous company.

Now the owner of the previous company is suing the individuals (A, B) and the new company (C).

The first appearance was a IAS PRELIMINARY CONFERENCE, but judge sent us back saying :the company was sued and we need a counsel: (PRELIM CONFERENCE ADJOURNED as it shows now). Now when I check the scroll, it says IAS PRELIMINARY CONFERENCE SCHEDULED.

I don't want to upset the judge, but we would like to be given a chance to explain that the individuals would like to defend themselves. If they want to take company under a judgment, they are more than welcome to. Even though company has nothing to do with the note that was signed (between individuals), and there is no reason for them to sue the company.

I hope this somehow clarifies the case.
Again, I am sorry for the confusing explanation since I wanted to keep the first post short.

 

[You Are Guilty]

You and the other individual are free to defend yourselves, while letting the company go unrepresented (and thus default). There may be dangers in doing so, if you are found to have ANY liability for the company.

"IAS" is the track the case is taking. It just means you will get the same judge overseeing the whole case, as opposed to having one judge do the PC, then another oversee discovery, and yet another for trial. Therefore, since you'll be seeing this judge for a long time, it's a good idea to not get on his/her bad side early on in the case.

 

[ricardoumbro]

You and the other individual are free to defend yourselves, while letting the company go unrepresented (and thus default). There may be dangers in doing so, if you are found to have ANY liability for the company.

"IAS" is the track the case is taking. It just means you will get the same judge overseeing the whole case, as opposed to having one judge do the PC, then another oversee discovery, and yet another for trial. Therefore, since you'll be seeing this judge for a long time, it's a good idea to not get on his/her bad side early on in the case.

Thank You.
The problem is that company did not make promise to pay them on the note which they are suing for. It was only the two individuals. The other stuff was transferred for $1 to the company. A trick, I assume.

One of the two individuals still runs the company.
The other individual left the company about 18 months ago and transferred the share to the remaining person. I assume that would remove any liability against 2nd person in connection to default against the company, but still carries the responsibility on the note.

If the individuals were equally liable for the payments against the note, it could have been much easier, but as it appears when they signed it they were also made individually and severally liable for it.

It is one big mess.

 

[HomeGuru]

Thank You.
The problem is that company did not make promise to pay them on the note which they are suing for. It was only the two individuals. The other stuff was transferred for $1 to the company. A trick, I assume.

One of the two individuals still runs the company.
The other individual left the company about 18 months ago and transferred the share to the remaining person. I assume that would remove any liability against 2nd person in connection to default against the company, but still carries the responsibility on the note.

If the individuals were equally liable for the payments against the note, it could have been much easier, but as it appears when they signed it they were also made individually and severally liable for it.

It is one big mess.

**A: yes it is one big mess. That is why you should have an attorney.

 

[ricardoumbro]

Thank you. We have already decided to go that way as we hope there might be a way we can get out of this in technicality, and forcing them to sue individuals directly without company so we can defend ourselves.

Do you know what is a typical retainer amount and hourly rate attorneys charge for a similar case, where the amount in question is not substantial?

Thank You.

 

[seniorjudge]

Thank you. We have already decided to go that way as we hope there might be a way we can get out of this in technicality, and forcing them to sue individuals directly without company so we can defend ourselves.

Do you know what is a typical retainer amount and hourly rate attorneys charge for a similar case, where the amount in question is not substantial?

Thank You.

You need to discuss this with a lawyer.

Anyway, let me explain it this way: the company is a legal person. Neither you nor the other two people are allowed to represent the company since you are not lawyers.

 

[ricardoumbro]

You need to discuss this with a lawyer.

Anyway, let me explain it this way: the company is a legal person. Neither you nor the other two people are allowed to represent the company since you are not lawyers.

OK, we spoke to a lawyer, he asked $5000 retainer and $225/hr.
Regarding the issue, we just want to drop the company from this case, since the company has nothing to do with the promissory note that was signed by these two individuals. Plaintiff probably got wise and wanted to cause some $$$ expense to us by adding company into the lawsuit, guessing we would get forced to settle instead of paying a lawyer.

How does someone (individual) have any right to just sue a company and drag them into the expense of paying lawyers? That means anyone can just sue a company for $500 and force the company to get out of this by just settling directly instead of paying lawyer.. I don't get that!