Legal Question in Business Law in California

Law Suits

Is it possible to be sued individually if you work for a company?


Asked on 5/17/09, 10:29 pm

5 Answers from Attorneys

Edward Hoffman Law Offices of Edward A. Hoffman

Re: Law Suits

Sure, even if it's for something you did on the job. The employer might end up having to provide you with a lawyer and pay any judgment that is entered against you. But even if it does that will not insulate you from being sued.

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Answered on 5/17/09, 10:45 pm
Daniel Bakondi The Law Office of Daniel Bakondi

Re: Law Suits

Is it possible, yes. but if you were sued individually, there are things you can do if you have an attorney to try to get your company to defend and indemnify you.

I have looked at this issue. let me know if you want help.

Best,

Daniel Bakondi, Esq.

IMPORTANT:

No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

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Answered on 5/17/09, 10:59 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Law Suits

Yes. The most obvious situation is where you work, for example, at Bank of America, and on Saturday you run a red light on the way home from your golf game and hit someone. They'll sue you and the fact that you work for BofA has nothing to do with it; the bank will not be sued (normally). I'm sure this is NOT what you meant, however.

The second type of situation would be if you were a business development officer for BofA, and you went to play golf with some prospective bank clients on Friday afternoon, and the same thing happened. Most likely, both you and the bank would be sued, and both you and the bank could be found liable - you because you drove negligently, and the bank because an employer is liable for the torts of its employees under a well-established legal doctrine called "respondeat superior" which is legal Latin for "the master shall respond" (for the misdeeds of her, his or its underlings.

A third situation is that you are a partner in a general partnership, and the partnership doesn't pay its bills. As a partner, you are liable to the outsiders for partnership debts, whether they arise out of contract-type situations, or torts.

Next, there is the situation where John Doe starts a business and incorporates it (or forms an LLC), thinking it will insulate him from personal liability if it goes down the drain. Usually it will, and the creditors of the LLC or corporation will not have recourse to Mr. Doe (and therefore probably won't sue him personally), even if the corporation commits a tort such as groundwater pollution or can't pay its bills. However, under the "alter ego" or "piercing the corporate veil" theories, a shareholder can be sued along with, or instead of, the corporation if he or she has ignored the separate nature of the corporation by commingling corporate and personal funds, failing to keep records, failure to observe corporate formalities, being seriously under-capitalized, and other ways as well. Veil-piercing is fairly uncommon.

Finally, it is fairly commonplace for plaintiffs to sue multiple defendants, especially when it is not clear which parties are, or are not, responsible for the contract or tort. It takes very little to add a name to a complaint. If someone hits me by running a red light, I'll expect my lawyer to sue the name on the driver's license and the name painted on the side of the truck as well.

If this does not cover your situation or if you need representation, please contact me directly.

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Answered on 5/18/09, 12:18 am
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Law Suits

Yes. The company usually defends its employees. Contact me directly.

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Answered on 5/18/09, 1:29 pm
Terry A. Nelson Nelson & Lawless

Re: Law Suits

Yes, for some things. Your company should provide you with a defense or your own attorney. Talk to them immediately to request they do so. If they don't, and you need to hire private counsel to defend you, feel free to contact me.

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Answered on 5/18/09, 2:14 pm


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