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My friends commercial cleaning business is being sued by a former contract employee. The business is an S Corp. The woman wasn't actually working for the business at the time she fell but working for the business partner cleaning a private resident. She already sued the owners of the resident but lost so she is now suing my friends business. Can she go after the business owners personal asests? As far as I know she has not been named personally. Also, what type of attorney should she consult with?
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She needs to consult with a litigation attorney… probably would find it helpful to have a business litigation attorney… and do so quickly. Sounds like the individual that fell may have lost the chance at suing the company if she has already brought the same action and just didn’t include them. That said, there are a lot of things that could have happened in that first case that could make you say they “lost.” So, assuming that the individual could have a suit against the business – to answer your question regarding personal assets, if the suit is against the business, then the personal assets should be safe. Since the business is an S-Corp, presumably, she filed the paperwork properly and put in the proper safeguards (like not-comingling funds and assets) that it would be difficult to “pierce the corporate veil.” With the lawsuit filed, it’s time to get into a lawyer’s office to defend or get the case dismissed. This is not something to do on her own. Litigation is complicated and the consequences of missing a deadline or filing improperly, etc. can be devastating.
Answered on Mar 31st, 2014 at 2:25 PM