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I sold a business 18 months ago. As agreed by seller & buyer, I retained control of a bank account that vendor payments where being deposited into for services prior to the business sale and I paid vendors for services prior to the sale from this account as well. I was waiting for 1 last customer payment and the day it was wired into this account, the new business owners tried to make claim of ownership on the account. Because it was not an asset transferred during the business sale, the bank (Suntrust) did not give them the money, but froze the account to both myself and the people making claim. Legal representation on this matter has now exceeded the funds on deposit and I basicly gave up. This is my question- if I give a summary judgement to a former employee for unpaid wages and/or bonuses for their services prior to the business sale and they register the judgement with the court, can they now make claim against the frozen funds in Suntrust and collect?
State/Country relating to Question: Florida Already Tried: Legal negotiations with the new business owners to release any claim against the funds and negotiations with the bank representative.
Yes, if the employee wins the lawsuit against you, then a claim can, but does not have to, be made against the bank account.
However, unless you accept full liability for the claim, this would not necessarily be the best course of action. This is because the employee might not be able to recover from the account and would then be left to recover from you. Of course, as long as the lawsuit did not name you in your individual and personal capacity, then you would have a bit of a liability shield. However, even if the employee's lawsuit was against the former business entity solely, the employee, with additional litigation, might be able to pierce any corporate liability shield and go after your personal assets to satisfy the debt.
So, I would consider that course of action only after determining what, if any, personal liability potential you have.
Please let me know, if you have follow-up questions.
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In my interests then what is a good course of action to gain control of these funds as the bank has already refused my claim without court order.
If it were me, and the claim by the employee was valid, I would attempt to get the court's approval of a settlement that would involve that court issuing a court order to unfreeze the funds and apply them to the employee's settlement.
If you contest the employee's claim or the court would not go along with that, then you only have three options: 1) sit on your hands and let the funds remain frozen, 2) waive your right to the funds, or 3) sue the opposing party who bought your business for breach of contract and get the funds unfrozen.
Attorney
Attorney and small business owner with 10 years experience in the general practice of law.