Company no longer exists

[pika1202]

What is the name of your state? Texas

Foundation repair was done on my parent's house several years ago. The work was guaranteed for life. The foundation seems to be sinking again. Attempts to contact the company indicate the company no longer existed if it ever was a legitimate business. What is the best way of figuring out what are options are in getting compensation for the faulty work? Can we sue the person listed in the secretary of state files as the company's president?

 

[racer72]

Probably not. Businesses come and go and sometimes folks are left high and dry. If Craftsman went out of business tommorow I would have a toolbox full of tools without a warranty.

 

[JETX]

"Attempts to contact the company indicate the company no longer existed if it ever was a legitimate business."
** Was this 'business' a corporation or a proprietorship?? If a corporation, it may have been sold or merged into another corporation.... or it could have been dissolved altogether. If a proprietorship, the person owning the company could still be liable..... even if the business is no longer in operation. Email me with the information and I will try to help.

"What is the best way of figuring out what are options are in getting compensation for the faulty work?"
** If a corporation and no longer in business AND not bonded, you really have no recourse. The old adage.... "A warranty is only as good as the person (or company) giving it".

"Can we sue the person listed in the secretary of state files as the company's president?"
** If you know that the 'business' had an agent for service, then you are answering the issue above as to corporation or proprietorship. And the answer is no, the 'Registered Agent for Service' has NO liability... in fact, it is likely that the named person was never an employee of the company (it is fairly common to have an attorney or even a 'service company' to serve as agent).

 

[pika1202]

This is what I know of the company that did the foundation repair on the home:

The company was incorporated in Texas in 1993. The company does not exist now b/c of forfeited existence in 1998 due to failure to pay its taxes.The registered agent listed with the Sec. of state is also listed as the president and director of the company. Thus, in my question in my first post I meant to write may we sue the president of the corporation?

The Tex. Bus Corp Act art 7.12(c) states that a corporation existence for purpose of continuing business or affairs for 3 years after the corporation was dissolved. You stated that "If a corporation and no longer in business AND not bonded, you really have no recourse." How would i find out if it is/was bonded since that is may be my only recourse?

Foundation repair has to be approved by an engineer. The engineer who approved the work is president of his own independent engineering firm, which does still exist. Would it be possible to sue him under TDTPA?

 

[JETX]

"The registered agent listed with the Sec. of state is also listed as the president and director of the company. Thus, in my question in my first post I meant to write may we sue the president of the corporation?"
** No. An individual (even president of the corporation) cannot be held liable for the debts of a corporation.... without extensive litigation to try to prove that the corporation was being operated as an 'alter ego' of the individual.

"The Tex. Bus Corp Act art 7.12(c) states that a corporation existence for purpose of continuing business or affairs for 3 years after the corporation was dissolved."
** And that period has already expired... even if you had been able to prove liability.

"You stated that "If a corporation and no longer in business AND not bonded, you really have no recourse." How would i find out if it is/was bonded since that is may be my only recourse?"
** The bond would have been asked for, and provided, BEFORE the work was done. If there is nothing in your paperwork as to being bonded, then there isn't any.

"Foundation repair has to be approved by an engineer. The engineer who approved the work is president of his own independent engineering firm, which does still exist. Would it be possible to sue him under TDTPA?"
** Theoretically, he could be sued, but you won't win. You simply would have to prove that any deficiencies or problems were due to HIS engineering errors or omissions, or negligence. And there is less of a chance of any successful DTPA challenge.