Legal Question in Business Law in New York

I was in a 2 person corporation when we had some issues and decided it would be best for me to resign. I resigned and sold all my shares back to the 1 owner left in the company. I signed a resignation agreement and had verbal and written confirmation that stated that I would be removed from all legal and financial responsibility at the company. While still working there I opened an American Express account for the company which ended up having me as the primary user and the other person in the company as a secondary. After I resigned I was told in writing, as well as in the resignation agreement I signed, that all credit cards and other financial accounts would be removed from my name. The owner never removed me from liability for the company and used the American Express card without my knowledge, racked up a lot of debt, and now stopped paying for it and closed the company leaving me with the debt. He admitted in email/text message correspondence that he used the card without my knowledge. Do I have any legal grounds to remove the debt from my name and recover damages for ruining my credit?


Asked on 2/08/16, 3:26 pm

2 Answers from Attorneys
Michael Krigsfeld William Schwitzer & Associates, P.C.

From the information you told me it seems like the corp should have assumed all corp liability as of the date your resignation took effect. If there was indemnification language included that would give you even more protection. A lot hinges on the exact language. If you wouldnlike to discuss your options feel free to email me your contact information to [email protected].

All the best!

Michael Krigsfeld, Esq.

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Answered on 2/08/16, 3:32 pm
David Slater David P. Slater, Esq.

While you may have legal action against the corporation and the owner individually, this will not effect your credit card agreement with AE unless they agreed to remove you.

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Answered on 2/08/16, 4:11 pm


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