Legal Question in Business Law in California

I started a lawsuit against a former employer about 5 yrs ago. He dragged it out for a LONG time. Now my lawyer just found out that he sold the business. In addition, he now is conservatorized. My lawyer says that I can't go after him personally since he dissolved his business. Do I have any recourse?


Asked on 4/17/12, 5:34 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Well, first of all, I'd say your lawyer is wrong. Dissolving a business (e.g., a corporation) is more likely to make the individual former owner(s), directors(s) and/or shareholders personally liable, rather than less.

Next, I'd say that if a business entity were dissolved with lawsuits pending against it, this would add to the grounds for suit.

Most important, I'd be inclined to want to review the case file to find out the real reasons this suit has dragged on for five years. Occasionally this happens, but in many such long, drawn-out cases, the court may be required to dismiss, or have the discretion to dismiss.....see Code of Civil Procedure sections 583.110 to 583.430 rregarding when a court may or must dismiss a case due to passage of time.

It's entirely possible that your attorney has not been diligent in conducting pre-trial matters such as discovery, and may be partly to blame for the matter not coming to trial. In any case, I can't see how dissolving the business could mean you can't sue him personally.

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Answered on 4/18/12, 2:20 pm


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