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Roger, Attorney
Category: Business Law
Satisfied Customers: 30903
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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My wife is a member of a board of directors for a non profit

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My wife is a member of a board of directors for a non profit day care that went out of business and wasn't able to pay the teachers for the last two weeks of work. Now those workers are suing my wife and other board members in small claims court. The day care also owes the IRS $154,000 in taxes that it didn't take out of the worker's weekly earnings.

Up until two months before the day care closed, my wife and board members were in the dark about the dire financial situation of the day care. The director, who was recently let go by the board, had hidden or misrepresented the financial situation up until the last few months. This is a volunteer position and my has no experience in business, has only served on the board for a year and never signed checks

My question is can the workers actually sue my wife and other board members personally instead of the day care, which doesn't have any money? Also, how concerned should they be about the IRS coming after them for the unpaid taxes?
They can't be sued personally for their actions as board members UNLESS they committed a criminal act. This apparently has not been alleged if they're suing in small claims court.

They should file a motion to dismiss the claims as they can't be held individually responsible.
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