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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 112774
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am trying to figure our a complicated issue.. I have a business

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I am trying to figure our a complicated issue.. I have a business in puerto rico.. I just had a former employee file a false claim with the "work Commission" in Pr sing I fired her unjustly and did not pay her.. now they are saying I owe her $3,000.. I know you're not a PR licensed lawyer.. just trying to figure out if I can incorporate the business from a sole proprietorship and walk away since I am a resident of Texas and this is a "civil matter" and all the " work commission" has is my first and last name and Business name.. any thoughts?
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

I am afraid that if the business is already having a claim filed against it, I am sorry but it is too late to try to incorporate now to avoid personal liability, since the violation occurred as a sole proprietorship you would end up still being liable. You would have to face this problem in PR and either negotiate a settlement with her or fight the case in PR. If she gets a judgment against you, then she would have to come to Texas to enforce it against you. The problem is that PR allows for garnishment of wages on a judgment, even though Texas law does not, and if she gets a garnishment order in PR and then comes to Texas to file the judgment for recognition of foreign judgment then the Texas court would have to honor the garnishment order even though Texas does not permit garnishments of wages on Texas court orders.

The only other option beside fighting or negotiating is bankruptcy if you qualify (but it is not usually prudent to file bankruptcy over a $3000 debt). Of course, you could hope she gets a judgment in PR and does not have the means or does not carry through with coming to Texas to enforce the judgment, but as this is a wage claim, PR could send a request to the IRS to levy your income taxes as well if she pushes the debt enforcement and that is a risk you take as well here.



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Law Educator, Esq. and 5 other Business Law Specialists are ready to help you
Customer: replied 3 years ago.

so If I basically ignore it and she does not follow thru on it.. I am in the clear?


 


I actually want to see if I can file a suit against her for filing a false claim and causing me to fly in to PR multiple times costing me thousands of dollars in plane tickets, rental cars, time lost etc etc.. but not sure if that is possible or smart..

Thank you for your response.

Legally I cannot tell you that you can ignore it. However, if she gets a judgment in PR and you are not in PR then the PR courts have no personal jurisdiction over you to enforce the judgment and she has to pursue you in Texas. If you file suit against her you have to file in PR and then you are subjected to the jurisdiction of the PR court. Furthermore, you cannot sue her for filing a false complaint unless you fight the wage claim and prove it is false and win that claim. If you do prove it was false and win the wage claim, then you can indeed sue her for malicious prosecution and seek all of the damages you suffered as a result of her false complaint.



Thank you so much for using JustAnswer.com. I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered. PLEASE use REPLY to EXPERT if you would like more information or if you feel something was not included in your answer.

Kindly remember the ONLY WAY experts receive any credit at all for spending time with customers is if you click on OK, GOOD or EXCELLENT SERVICE even though you have made a deposit or are a subscription customer. YOU MUST COMPLETE THE RATING FOR THE EXPERT TO RECEIVE ANY CREDIT, if not the site keeps your money on deposit.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

Law Educator, Esq. and 5 other Business Law Specialists are ready to help you
Customer: replied 3 years ago.
great thanks for the info! Very helpful!
Thank you.
Customer: replied 3 years ago.

What would you do in this situation.. I dont think it is a actual judicial claim yet the last letter I got said this at the end : ( translated )



"We urge you to seize this opportunity to resolve the matter so via, without having to expose themselves to legal proceedings"



so I think its basically a letter from a guy in the work commission that "ruled" on it etc..


wonder if I can make her an offer etc..

Yes, that is what the letter is inviting you to do, to make an offer, which you need to do in writing and any offer she accepts you need to get in writing as well so you have proof of settlement and it is a binding contract.
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