(Michigan) Lawsuit options (owner not responding and may no longer be in company)?

[ezbreezy123z]

Hi everyone! I'm writing to you from Michigan.

I wrote on this forum last year (see post #1 and post #2) regarding a lawsuit with (example) ABC Company. I was hired by the founder, (example) Jane Doe, to work on a project (that she did through a partnership with XYZ Company) but I never got paid.

I've filed a lawsuit but no one showed up to court. I filed it a second time and no one came. I'm now on my third attempt...and I'm trying my damndest to be successful this time!

Here's my question: I just learned through her social media that she moved out of state a few months ago (not sure where yet), and that she's exited the company. So:

1. Can I still sue ABC Company? I worked on behalf of the company, but I only dealt with Jane Doe. Would the company itself still be liable?
   
   
2. Do I need to go after Jane Doe herself? I originally did not list her on the lawsuit because the company is an LLC and that gave her some sort of protection. I've searched LARA (Michigan Licensing And Regulatory Affairs) for updated articles of incorporation, etc. and I did not see any changes to the business structure....she's still listed on the business docs (however, the most recent articles of incorporation, etc. are from 2022).
   
   
3. What next steps should I take?
   • How can I find her most recent corporation info from 2023?
   • Do I need to find her new home address?
   • How can I find her business address if that's changed (one building appears to be vacant)?
   • Do I need to keep reaching out to her or someone else now?
   • Should I contact the partner company, XYZ? Do I need to include them on the lawsuit too?

Thanks in advance for any help you can provide!

 

[doucar]

When you said you tried, but no one showed up in court. Was that because you were unable to serve them? How did you try to serve the corporation?

 

[adjusterjack]

I've filed a lawsuit but no one showed up to court.

Didn't you ask for a default judgment?

 

[zddoodah]

I've filed a lawsuit but no one showed up to court. I filed it a second time and no one came.

Ok...I've never been in a Michigan small claims court, but "no one show[ing] up" doesn't typically put a stop to a lawsuit. If the defendant doesn't appear, I think most small claims judges will order a continuance, but the plaintiff will eventually get a chance to put on his/her/its evidence and obtain a judgment. The court didn't dismiss these cases just because the defendant didn't show up, did it?

Can I still sue ABC Company? I worked on behalf of the company, but I only dealt with Jane Doe. Would the company itself still be liable?

Your second question was covered in your prior threads. The answer to the first question is yes, but if the LLC is no longer operating, suing isn't going to do you any good.

Do I need to go after Jane Doe herself?

Again, this was covered in the prior threads. We don't have any information to know whether this woman is personally liable. Also, if she has moved out of state, what good will it do you to sue her?

What next steps should I take?

Remind us how much $$ is at issue.

You can hire a private investigator to locate this person, but I'm guessing you're at the "cut your losses" stage.

 

[quincy]

ezbreezy123z, it sounds as if there was a problem with service. Did you have the defendant(s) personally served? Was proof of service filed with the court? Or was it the court that served the complaint? If the latter, was the court successful in serving the named defendant(s)?

If Jane Doe hired you to work with her on a project for the company, I would think she would be the one responsible for paying you or seeing that you were paid and she, therefore, would be the one you would sue.

Something sounds off with what you describe. What exactly did the judge say when you appeared before him the first time? Did you present your case or was another hearing scheduled instead?

 

[ezbreezy123z]

Hi and thank you all for your responses! Sorry for the delay in responding!!! Life got hectic this past week (which includes an illness), but to answer your questions:

When you said you tried, but no one showed up in court. Was that because you were unable to serve them? How did you try to serve the corporation?

Correct: they were never served. I found two addresses on file for the company. The first one was marked "undeliverable" (which I thought meant the house was vacant, but it might mean they refused to accept the summons?). The second address was actually an abandoned office building; the summons was taped to the door and no one ever reached out or showed up.

Didn't you ask for a default judgment?

I thought I could only do this IF they accepted the summons? Can I request a default judgement if they never got served?

(a) Ok...I've never been in a Michigan small claims court, but "no one show[ing] up" doesn't typically put a stop to a lawsuit. If the defendant doesn't appear, I think most small claims judges will order a continuance, but the plaintiff will eventually get a chance to put on his/her/its evidence and obtain a judgment. The court didn't dismiss these cases just because the defendant didn't show up, did it?
...
(b) ...but if the LLC is no longer operating, suing isn't going to do you any good.
...
(c)...Remind us how much $$ is at issue.

(a) The case wasn't dismissed; they've given me 2 continuances. So, to reiterate my question to @adjusterjack: I can request a default judgement if they never got served?

(b) I haven't seen any dissolution docs on the LARA business site, or the Patent Office...but the most recent docs are 2 years old. I'm assuming they don't expire annually though...so I'm almost 100% sure the LLC is still valid.

(c) The amount I'm owed is $2,000.

 

[quincy]

Hi and thank you all for your responses! Sorry for the delay in responding!!! Life got hectic this past week (which includes an illness), but to answer your questions:


Correct: they were never served. I found two addresses on file for the company. The first one was marked "undeliverable" (which I thought meant the house was vacant, but it might mean they refused to accept the summons?). The second address was actually an abandoned office building; the summons was taped to the door and no one ever reached out or showed up.


I thought I could only do this IF they accepted the summons? Can I request a default judgement if they never got served?


(a) The case wasn't dismissed; they've given me 2 continuances. So, to reiterate my question to @adjusterjack: I can request a default judgement if they never got served?

(b) I haven't seen any dissolution docs on the LARA business site, or the Patent Office...but the most recent docs are 2 years old. I'm assuming they don't expire annually though...so I'm almost 100% sure the LLC is still valid.

(c) The amount I'm owed is $2,000.

The defendant must be served - and if the defendant cannot be personally served, you must request of the court an alternate service.

 

[adjusterjack]

The defendant must be served

With red wine or white?

 

[zddoodah]

they were never served.

That information would have been helpful to have had in the original post.

I can request a default judgement if they never got served?

You can request anything you like, but you'll get nothing until and unless you serve the defendants.

I haven't seen any dissolution docs on the LARA business site, or the Patent Office...but the most recent docs are 2 years old. I'm assuming they don't expire annually though...so I'm almost 100% sure the LLC is still valid.

People frequently don't bother with the formal dissolution process. If the LLC is no longer operating and its sole owner has left the state, then suing the LLC is likely to be a waste of time. I'm assuming that the individual who has left the state is/was the registered agent for the LLC is can no longer be served at the address listed on LARA.

The amount I'm owed is $2,000.

If you can effect service, great, but methinks any money you spend on this will be good money after bad.

 

[quincy]

With red wine or white?

A Chardonnay would be nice.