Lawsuit on business I used to own

I sold the assets of a trucking company that I used to own in Missouri 2 yrs ago. It was incorporated. The business has nothing left and has ceased any operation. Today I received a summons saying that 4 yrs ago a driver employed by my old company caused an accident and left a passenger in another vehicle badly injured. This person is sueing the corp for $25,000. My question is this.. since there is nothing left to this business and I was incorporated how do I respond to this sumomons? Am I personally liable for this in any way? I have not filed bankruptcy. Do I need to?

Kelly lamp said:

I sold the assets of a trucking company that I used to own in Missouri 2 yrs ago. It was incorporated. The business has nothing left and has ceased any operation. Today I received a summons saying that 4 yrs ago a driver employed by my old company caused an accident and left a passenger in another vehicle badly injured. This person is sueing the corp for $25,000. My question is this.. since there is nothing left to this business and I was incorporated how do I respond to this sumomons? Am I personally liable for this in any way? I have not filed bankruptcy. Do I need to?

Click to expand...

My response:

Did you have truck / vehicle insurance for the business 4 years ago ?

If you did, then that insurance company is still on the hook to defend you, despite the fact that they may no longer be your insurance company today.

If you did have such insurance, send a complete copy of the Summons and Complaint to that insurance company, with a cover letter indicating a need for a defense, along with your current address, current phone number, and your Policy Number, by Certified Return Receipt.

If you didn't have insurance, you mights want to consider Bankruptcy.

IAAL

Did you receive the summons citing you individually, or as an agent for the corporation??

If you received were cited personally, you need to respond to the court that you are not the correct defendant in this suit. Note that the proper Defendant was a Corporation and that the assets of the Corporation were sold. As such, if there is any claim, they should be against the Corporation and that you have no personal liability for the former Corporation.

If you received the summons as an agent for the Corporation, you need to advise the court that the Corporation assets were sold and that you are no longer the Agent for the Corporation and have no personal liability for the former Corporation.

Either way, it will kill your personal involvement in any action. Due to the amount of the claim, you might consider asking an attorney to make this filing for you. It should be very reasonable.

I received the summons in the name of the corporation only. The papers were served to me at home. I received a response on this yesterday and the attorney said that if I had insurance when the accident occured that I should turn it over to them. I did have the appropriate insurance. Do you think I need to go that route or should I just tell the court that the business is gone and there are no remaining assets? Thanks for your response.

Since you already have a communication link with the opposing attorney, contact him/her and give them the insurance information. At the same time, be sure to advise them of the status (or lack of) the corporation and that there are no remaining assets.

In re-reading this thread, the attorney seems to have over-reacted (should have sent you a letter first), but I understand what he/she was doing. He was trying to get the corporation (or what remains) to respond to his claim. His r client's claim is against the corporation, in whatever form it currently exists, and not with the insurance company (the insurance company really insured the corporation, not the employees). By providing the correct insurance information to the attorney, he will probably still keep the lawsuit alive, but will attempt to resolve his claim with them. If not successful, he may continue to go after the corporation, but it is virtually non-existant at this time, so should be immune from further liability.

And you also need to contact the Corporations insurance agent. Advise them that the Corporation is being sued and that you expect them to investigate and handle the claim that occurred during the policy coverage period.