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Suing CEO of a corporation with suspended license

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CAsmallclaim

Junior Member
What is the name of your state (only U.S. law)? CA

Hi there,

The company (one man corporation) I did some work for last year failed to pay me over $9,000. I wanted to sue his corporation in a small claim court, but recently found out that his corporate license was suspended back in 2003, way before we did business together.

Does this mean that I can hold the CEO personally liable for the damages- meaning can I sue the CEO of the company "doing business as", instead of the corporation itself, since he did not have a valid license? (It would be much better for me to sue him instead of the company, since knowing their financials I believe the company will be shot down very soon and my money lost for good...)

Any advice will be very helpful!

Thanks!
 


John_DFW

Member
You can name both as defendants, and that is what I would do.

If you want to make your case against the individual, look into "piercing the corporate veil".
 

CAsmallclaim

Junior Member
Thanks John for the reply.

So on what grounds do I name the CEO as the defendant?

If I name both the Corporation and the CEO as defendants, what do I need to show to the judge to make him personally liable in this case and not dismiss it on the grounds that "he was not involved personally"? Do I need to present some legal paper proving that his license was suspended- would that be enough?

Also, do I name the Corporation in the file as "Name, Inc." or just the "Name", since his license was suspended....?

Thanks!
 

FlyingRon

Senior Member
Just because their license to do business is suspended, doesn't mean the corporate entity doesn't exist.

Without knowing what the nature of your claim against then is, we can't venture a guess as to who besides the corporation to name. It would depend on their acts and how many people are involved in the corporate entity.

If you want to provide details, we might help. Otherwise, I'm not going to write a book in this forum about all the possibilities.
 

john39

Member
Just because their license to do business is suspended, doesn't mean the corporate entity doesn't exist.

Without knowing what the nature of your claim against then is, we can't venture a guess as to who besides the corporation to name. It would depend on their acts and how many people are involved in the corporate entity.

If you want to provide details, we might help. Otherwise, I'm not going to write a book in this forum about all the possibilities.
Reverse it - Can a suspended corporation sue, in court?

Yes? No?

If no,why do you think suspended corporation can defend any action in court?
 

john39

Member
Until the corporation is reinstated or revived the owner has direct liability and it is not shielded by the rights and powers of the (suspended) corporation

And,don't rely on what I say...do your own research or ask a lawyer :D
 

You Are Guilty

Senior Member
Until the corporation is reinstated or revived the owner has direct liability and has to pay you a bazlllionty dollars in $2 bills, and then come to your house, re-shingle it, and cook you dinner for a week.

And,don't rely on what I say...do your own research or ask a lawyer :rolleyes:
 

FlyingRon

Senior Member
The issue here is that "a license" has nothing to do with the existence of the corporation. The corporation may need a license to engage in some business, but that doesn't mean they cease to exist if they lose that license. Not all business need a license.

A corporation is established when they file their articles of incorporation with the Secretary of State. They don't cease to exist until a formal dissolution is filed with the state. They continue to incur their franchise tax, and all other obligations until that happens.

Of course a company doing business that requires a license that finds itself without one is probably in pretty dire financial situation that may make any attempt to enforce a judgment against them difficult.

There. That's more than I intended to write and I'm not going to talk further unless you explain just what it is that you're trying to do.
 
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john39

Member
Until the corporation is reinstated or revived the owner has direct liability and has to pay you a bazlllionty dollars in $2 bills, and then come to your house, re-shingle it, and cook you dinner for a week.

And,don't rely on what I say...do your own research or ask a lawyer :rolleyes:

:D

Let me ask you,in my retreat

but aren't you that breed?
 

john39

Member
A suspended corporate defendant may not defend or participate in an action.

(Alhambra-Shumway Mines, Inc. v. Alhambra Gold Mine Corp. (1957) 155 Cal.App.2d 46, 50—51.)

uf uf what a bliss

I found this!!!:D
 

john39

Member
Until the corporation is reinstated or revived the owner has direct liability and has to pay you a bazlllionty dollars in $2 bills, and then come to your house, re-shingle it, and cook you dinner for a week.

And,don't rely on what I say...do your own research or ask a lawyer :rolleyes:

facile est inventis addere :D (It is easy to improve what has been already invented)

subinfero ut est cassus est facillimus

(I just made this one :) )
 
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john39

Member
Quincy look what I made!! Brand new latin quitation!!!:D

subinfero ut est cassus est facillimus

(to add when is empty is easiest)

Can I have copyrights on it if it is just a latin sentence?
 
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FlyingRon

Senior Member
There's a difference between a suspended corporation and a suspended license.
The original poster used suspended license, so until CAsmallclaim comes back and explains just what he's after, this whole conversation is pointless.
 

john39

Member
There's a difference between a suspended corporation and a suspended license.
The original poster used suspended license, so until CAsmallclaim comes back and explains just what he's after, this whole conversation is pointless.
What is the difference?
 

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