Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
Greetings! I am sorry to hear about the pending lawsuit. You have asked excellent questions. I am happy to explain the general rules when a LLC is sued.
Generally, under the laws of a Limited Liability Company, a "member" can not be "personally liable" for the negligent acts of officer or employee of the company.
Hence, the term
However, if the Plaintiff can demonstrate that the LLC was a sham, designed to defraud consumers, (which does not appear to be the case), a plaintiff may "pierce the corporate veil" and hold the owners personally liable.
The fact that the LLC is closed does not change the Plaintiff's likelihood of establishing personal liability. LLC's open and close every day. Some are successful, some are not. Whether a product that was sold was "inferior" does not change the analysis either.
They are certainly welcome to bring a lawsuit against a dissolved company, and potentially attempt to recover any assets the LLC may have, but again, considering what you are stating, even assuming they win their case, there will be very little to collect.
I am not aware of a lawsuit because a company has dissolved. I gather they are attempting to collect from you personally since the LLC is dissolved.
However, presuming you did everything according to the law, notwithstanding their satisifaction with your services/product, does not make you personally liable at a later date absent a showing of Fraud or commingling of funds.
LLC Law varies from State to State, but generally, the above applies in most if not all states.
You should not ignore the lawsuit, and hire a local lawyer to help you dismiss the case. If they lose after filing a frivolous lawsuit, they may be liable for your attorney fees and costs.
Again, they can threaten you all they want. However, if the LLC is not in business, there is nothing they can do to you personally. They realize this, which is probably why they keep making threats.
Does this make sense?
Additionally, someone in your position would be wise not to talk to them or respond.
Inferior is different than fraud.
Some people say Google is "inferior" to Yahoo. That appears to be an opinion. However, if Google started collecting money from consumers and stealing it, that is different.
It would be wise to call around and get quotes from lawyers and see if they will take any case on a "contingency" since you have limited fees. This can not hurt. Additionally, someone in your shoes should not be talking to these people
Great! Keep all documentation. Go back and retrieve all of your notes and take copious notes in the future. Stay clear of these losers.
The threat of a lawsuit is something that has been around for years. If they want to sue you, they will. It appears on the surface they are attempting to simply shake you down since the business is dissolved. This should not prevent you from staying on the offense and calling to see rates for a local lawyer.
I can't tell you what they are thinking. I have never been a proponent of demand letters unless i am asking someone to refrain from certain behavior i.e. cease and desist. If they wanted to sue, they would have by now. If your LLC was open and thriving you would have already been sued by now.
Again, I am terribly sorry they are putting you through this, but it does appear as if they are grasping for straws. Again, I do not think it will do you any harm to call around and receive quotes and see what you can work out should something come of it. In the meantime, lay low. Does this make sense?
Yea, and I want $15,000.00 too. Does that mean I am going to get it? Even if you had the money, would you pay them? I'm guessing your answer is no. There is nothing to talk to them about too.
Again, at this point, the only thing to do is to ignore their demands, and call around for a local lawyer to provide you a reasonable rate or contingency fee.
My pleasure! If there is anything you need in the future, please let me know. Please provide me with positive feedback if you are satisfied with your service tonight. :) Good luck, I am sure everything will workout.
Thank you. You too.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).