Legal Question in Business Law in California
Employee responsibility for company debts
My husband was recently named in a lawsuit along with his former employer, for damages stemming from unpaid rent. As the general manager my husband did locate the office space and at the insistence of the management group did sign the lease along with the owner. My husband made it clear that he had no interest in the company and this was understood by the mgt co. My husband terminated his employment about one year ago. Suffice it to say his former employer apparently has not paid the rent and now the management company is after us. Can they do this?
2 Answers from Attorneys
Re: Employee responsibility for company debts
I agree with the information provided to you in the earlier response. It depends on how it was signed. However, you do have a cross complaint against the employer for indemnity. Also you could have different defenses against the lessor.
The lawsuit has to be respoded to quickly. You need legal assistance. If you are in the Los Angeles area, please call or email for a free consultation. If not here, contact another attorney right away. Good luck.
Stan Lieber
818 888 1811
Re: Employee responsibility for company debts
First, almost anyone can sue anyone else over anything they're even remotely connected with; this doesn't mean they'll win, but failure to defend can result in a default judgment even though there was no liability. Therefore, whenever faced with a summons and complaint, get immediate legal assistance and file an answer.
In your specific case, your husband's potential liability on the lease will depend upon what the document(s) he signed actually say, and how he signed it. People who just place their signatures on blank lines are more likely to be personally liable than are those who sign in the format: "Roe Corporation, by John Doe, its vice president."
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