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My husband used to run a small, limited, company. He

Customer Question
My husband used to...

My husband used to run a small, limited, company. He dissolved the company 3, maybe 4 years ago, however, on Monday I came home and found that we were being named as a third party defendant in a civil suit for work that had been done 5 years ago. Can I file a statement of defense advising that the company has been dissolved?

Lawyer's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

Alberta, Canada

Lawyer's Assistant: Has anything been filed or reported?

The original lawsuit was filed in July of 2015, and his company was not named as a defendant at that time. It was only in December 2017 that we were named as a third party defendant.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I think that's all, thank you very much.

Submitted: 7 months ago.Category: Canada Law
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Answered in 27 minutes by:
12/20/2017
Lawyer: Debra, Lawyer replied 7 months ago
Debra
Debra, Lawyer
Category: Canada Law
Satisfied Customers: 105,562
Experience: Lawyer
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Hello! My name is Debra (formerly known as Legal Ease). Thank you for your question. I'm reviewing it now, and will post back again shortly.

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Lawyer: Debra, Lawyer replied 7 months ago

I am sorry to hear this.

Are you saying that the lawsuit was filed in July 2015 and this the first you'v heard of it?

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Lawyer: Debra, Lawyer replied 7 months ago

The fact that the corporation was dissolved is not a defence. It's not possible to get out of liability by dissolving a corporation.

But there is a solid defence here and that is that the corporation cannot be sued now. It's two late. If the defendant to the original suit brought this corporation into the lawsuit now it's too late to sue the corporation. That had to be done before two years passed since July 2015.

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

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Customer reply replied 7 months ago
He ran a limited company. I thought that with a limited company the principal's could not be sued personally, and he is not named personally in the lawsuit, unless they signed a personal guarantee.
Customer reply replied 7 months ago
Since more than two years have passed since the work was done and the original lawsuit was filed, doesn't that mean that the statute of limitations has passed and his company is no longer liable?
Lawyer: Debra, Lawyer replied 7 months ago

Yes.

As I've said because he wasn't added in time to the lawsuit the limitation period is the valid defence to use.

As well, if he is being sued personally the other defence is the contract was with the corporation and not him.

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Lawyer: Debra, Lawyer replied 7 months ago

Is there anything more I can help you with at this point in time?

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