Legal Question in Business Law in California

Personal liability on closed S Corporation

I sold my company 2 1/2 years ago and closed down the corporation (S). Recently, I was contacted by some lady who claims that she received a refund from my company 2.5 to 3 years ago, but lost the check. She just founfd it and now is looking to me to pay it as its ''stale'' and of course the bank account has long been closed down. She wants to go to small claims court. What is the best way to defend this? What are the relevant laws I may use as a defense?


Asked on 7/30/07, 10:39 am

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Personal liability on closed S Corporation

If the company is closed, that is the end of the discussion. Tell her you are sorry she screwed up, but it is not YOU that issued the check. If she takes you to small claims, take the corp paperwork with you that shows the wind down.

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Answered on 7/30/07, 2:28 pm


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