S
Steve Kelly
Guest
California
My wife worked for a company that was incorporated. The partners had a falling out, dissolved the company, and subsequently formed two new companies in competition with each other.
My wife remained in the employ of one of the former partners, and was asked by both of them to close the books on the old company. Some checks arrived that were actually receivables to the new company of her employers former partner (his new company has the same name as the old company but without the "inc."), however, the checks were made out to the old corporation. She deposited the checks in the old corporations account and made out new checks to the former partners new company, in order to make sure he received his money. He objected to being reimbursed in this way. When she informed her employer of the objection, and asked what she should do, he instructed her to return all future erronious checks to the senders. He told her that it was his former partners responsibility to make sure that his customers were informed of his new mailing address and company name, not hers.
The former partner now claims that this has caused cash flow problems and is unable to make payroll. He is threatening to sue my wife for damages. Her employer has suddenly developed a bad memory and claims he never told her to handle the checks in that way. The attorney who represents my wifes employer and his company claims that it would be a conflict of interest for him to represent my wife if she is not in agreement with her boss (his client).
Is my wife liable? Is it truly a conflict of interest for the company attorny to represent her, even though she was carrying out the will of the company? Does the former partner have any real grounds for litigation?
My wife worked for a company that was incorporated. The partners had a falling out, dissolved the company, and subsequently formed two new companies in competition with each other.
My wife remained in the employ of one of the former partners, and was asked by both of them to close the books on the old company. Some checks arrived that were actually receivables to the new company of her employers former partner (his new company has the same name as the old company but without the "inc."), however, the checks were made out to the old corporation. She deposited the checks in the old corporations account and made out new checks to the former partners new company, in order to make sure he received his money. He objected to being reimbursed in this way. When she informed her employer of the objection, and asked what she should do, he instructed her to return all future erronious checks to the senders. He told her that it was his former partners responsibility to make sure that his customers were informed of his new mailing address and company name, not hers.
The former partner now claims that this has caused cash flow problems and is unable to make payroll. He is threatening to sue my wife for damages. Her employer has suddenly developed a bad memory and claims he never told her to handle the checks in that way. The attorney who represents my wifes employer and his company claims that it would be a conflict of interest for him to represent my wife if she is not in agreement with her boss (his client).
Is my wife liable? Is it truly a conflict of interest for the company attorny to represent her, even though she was carrying out the will of the company? Does the former partner have any real grounds for litigation?
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