Legal Question in Civil Litigation in California
Can a unauthorized former employee (office Manager) of a C-Corporation in California, obligate the corporation to a three year term service contract? This person was not an officer and did not make the corporation aware of any long term contract. We expect a small claims or civil suit to arise and would like to know our legal obligation and/or standing.
1 Answer from Attorneys
Obviously a 'former' employee has no authority to do anything after termination. But, if the deal was cut before termination, then you have a problem showing they had no authority at the time. If you are being sued, you raise all those issues in your defense, but you also counter sue the former employee if approporiate so that all the parties are in front of the judge at the same time. If this is small claims court, go for it. If this is in Superior Court, get your legal counsel immediately. If you haven't yet been sued, then your attorney may be able to 'settle' the dispute without litigation and huge expense. If you are serious about getting counsel, feel free to contact me for the legal help you'll need.