Legal Question in Civil Litigation in Illinois
Whty am I wasting MY time?
I purchased a small company on 12-06-04. My contract clearly says I am only responsible for it as of that date. The people I purchased it from are being sued for $12,000.00 for an incident in 7-04. I have been included in the lawsuit. Do I have to appear in court to defend myself against this claim. Can I be reimbursed for any court costs and for my time? It seems unfair that I have to incur costs to defend myself from something I am NOT legally responsible for.
3 Answers from Attorneys
Re: Whty am I wasting MY time?
If you are a defendant in the lawsuit and fail to appear a default judgment could be entered against you. Call me if you would like to discuss.
Re: Whty am I wasting MY time?
Fair or unfair, if you are a defendant and you do nothing it is as if you admit every allegation that is contained in the complaint against you.
You must answer the complaint.
You also would be well advised to retain an attorney to make sure that you are let out of the litigation if you had nothing to do with whatever incident alleged. There are ways to do that and an attorney will be able to do that for you--I would not recommend you do it yourself because you may simply screw things up for yourself...
It is a pain, but you must go through the proper channels to get yourself out of it.
I hope this helps,
Taradji Law Offices
Re: Whty am I wasting MY time?
Although the underlying transaction occurred before your purchase, you still may be liable. Typically in a sale of a business, the new owner will "assume" the debts and/or obligations made by the previous owner. This assumption must be specifically laid out in the contract for the purchase of the business. Depending on what your sales contract states, you may or may not be liable. Since you have already been named in the lawsuit, you will still need to actively defend your case or else a default judgment may be entered against you (either personally or on behalf of the corporation). You can possible file a motion to dismiss, there are plenty of sample motions online. Please do not hesitate to contact me with any further questions.