Legal Question in Business Law in Georgia

Personal liability for friend's corp's bad checks
A friend of mine asked me to look after his business affairs while he went over seas for several months. This included writing paychecks, making deposits and paying bills from the corporate account. I was added as a signatory on the account. I did not write any checks with out his prior knowledge and permission. The business failed and closed. One of the paychecks bounced. The person it was made out to is now sueing me personally for the amount of the check plus nsf fees and back pay. I called the bank and they do not hold me accountable for the check because I'm not an owner on the account. Now I have to respond to the summons. How should I reply and does the plaintiff have any standing against me?

Asked on 7/12/06, 10:57 pm

3 Answers from Attorneys

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

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Re: Personal liability for friend's corp's bad checks

I would highly recommend getting local counsel to assist with the case. How you answer a complaint can be very tricky and affect the rest of the litigation. Even though it sounds like you would have no liability, they still have standing to sue you since you signed the checks.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Answered on 7/13/06, 3:31 pm

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Charles W. Field Charles W. Field, Attorney at Law

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Re: Personal liability for friend's corp's bad checks

Depending on the amount involved, you MAY be able to handle this matter yourself. HOWEVER, I would strongly suggest that you at least consult with a local attorney.

Answered on 7/19/06, 4:49 pm

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