Company filed a claim against me and not my corporation

[klohmann]

What is the name of your state (only U.S. law)? Washington

I was served a notice the other day from a company that my company (an S-Corp) used to do business. The claim lists me personally as the defendant and not the company I am president of. What should I do about this? Should I contact the court? Wait until the court date and let the judge know about what I think is a mistake? Contact the plaintiff and let them know that they need to file this claim against the corporation?

Please help.
Kurt

 

[justalayman]

Wait until the court date and let the judge know about what I think is a mistake?

Oh God no, don't do that.

You need to file an answer/response as the complaint and summons likely directed you to do. If you believe you are not the proper defendant, you need to respond with that as your defense.

Contact the plaintiff and let them know that they need to file this claim against the corporation?

You don't have to tell them to file against the corp unless you want to. In the immediate situation, you need to defend yourself which is why you must file a answer/response within the alloted time.

 

[Mass_Shyster]

What is the name of your state (only U.S. law)? Washington

I was served a notice the other day from a company that my company (an S-Corp) used to do business. The claim lists me personally as the defendant and not the company I am president of. What should I do about this? Should I contact the court? Wait until the court date and let the judge know about what I think is a mistake? Contact the plaintiff and let them know that they need to file this claim against the corporation?

Please help.
Kurt

You need to file an an answer, or a motion to dismiss.

Depending on the type of suit, you may still be liable even though you would prefer your corporation be the defendant.

If the action is for a tort (negligence), or if the plaintiff had no reason to know they were dealing with a corporation, you are probably liable.

If the plaintiff knew they were dealing with a corp, and the dispute is a contract issue (or possibly product liability), then they probably sued the wrong person.

 

[klohmann]

Thanks for your reply and advice. Our company owes money for products that we received from the plaintiff. Unfortunately, our company has gone out of business and there is no revenue to pay this vendor. I know that they will get a judgement when this case is tried, but I want to make sure that it is against the correct entity (the corporation), and not me. I don't want this to damage my credit.
I plan on sending a letter to the district court, informing them of the mistake. Should I also file a motion to dismiss along with the letter?

Thanks again.
Kurt

 

[Zigner]

Thanks for your reply and advice. Our company owes money for products that we received from the plaintiff. Unfortunately, our company has gone out of business and there is no revenue to pay this vendor. I know that they will get a judgement when this case is tried, but I want to make sure that it is against the correct entity (the corporation), and not me. I don't want this to damage my credit.
I plan on sending a letter to the district court, informing them of the mistake. Should I also file a motion to dismiss along with the letter?

Thanks again.
Kurt

You need to research what it means to file a proper response. Better yet, consult with an attorney.
Furthermore, you would be surprised at how quickly one can pierce the corporate veil (google it)

 

[justalayman]

You need to research what it means to file a proper response. Better yet, consult with an attorney.
)

ditto.

a letter to the court informing them of a mistake is a mistake. You do not know if it was a mistake or not. What you know is you believe you are not a proper defendant and you need to file a response asserting that.

 

[latigo]

I trust that you’ve taken to heart what justalayman has cautioned you about. Your thinking that you can iron this all out by having a chat with the judge on the day the case comes before the court to explain why you shouldn’t be there is not just naïve, it is double dumb.

Anyway, the reason I’ve popped in here is to point out that there is another aspect of this situation of which you need to be made aware.

Just because your business affairs have been conducted under the registered name of a duly licensed corporate entity and debts have been incurred in the sole name of the corporation does not necessarily provide you with personal immunity!

Under certain conditions when shown - and there a lot of them - a creditor can breach the corporate protective wall and reach the pockets of the business functionaries.

You need to spend some money with an attorney experienced in the practice of corporate law.