Legal Question in Business Law in California
I'm a business owner, in my lease with the landlords I became directly liable to my landlords. They don't have to sue the restaurant, they can sue me directly and hold me directly liable. Does that work both ways? If they frauded me and the lease, am I able to hold them directly liable as well? is there case law supporting this in CA?
4 Answers from Attorneys
You can sue whatever individual(s) made the misrepresentation(s) to you. If the individual(s) and the landlord are not the same, then you would usually sue both the individual(s) and the landlord.
I would definitely consult with a lawyer in your area to see how this general rule applies to your situation.
I agree with Mr. Perry's answer, and also note that the individuals may potentially be liable for the fraudulent misrepresentations as alter egos.
First, there is abundant case law in California addressing every possible combination of parties that might be named as defendants or sue as plaintiffs in lawsuits regarding general liability as well as lease issues. A lawyer working for you will have no difficulty finding case law to show which party or parties have standing to sue as plaintiffs, and/or which party or parties may be sued and obliged to defend.
Second, it is usually better practice for a lawyer to draw up a complaint as broadly as reasonably possible, including all potential parties and alleging all reasonably-likely causes of action (theories of recovery). One cannot go too far, of course; at a point, the suit becomes too cumbersome and one might be accused of malice.
Finally, whether it "works both ways" in your particular case cannot be told without looking at the lease, knowing whether the parties are individuals or corporations or LLCs, and whether you are talking about defending, counter-suing, or initiating an unrelated new lawsuit. Again, the court system has rules that prevent taking unwarranted legal pot-shots at parties that haven't done any harm and are insulated from liability by, say, a "corporate veil," but in general a suit can and should name all likely parties as well as a few Doe defendants.
I'm not sure who the other parties are. I mean if the landlord made a misrepresentation to you, then you can sue them for fraud. I don't understand who the other person is. Are you saying that the landlord's agent made the misrepresentation, but you are wanting to sue the landlord?
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