Legal Question in Business Law in Maryland

Business Charters

An associate of mine and his wife started a business in 1993. In 2001 they divorced and she was awarded the business. At this time he was ordered not to directly or indirectly interfere with his old company. During the divorce, his mother and a friend of his started a similar company under a different name. He is an employee of this company. A few weeks ago it came to my attention that his old company had lost its charter in 1997. Knowing that the name was well known in the area, I purchased the charter a few weeks ago. Today I received a letter from his wife's attorney stating that her ex-husband and I were conspiring to hurt her company and that I had until 5PM 1/4/2002 to dissolve my new corporation or we will both be sued for damages. My feeling is that I bought that charter legally. The only name associated with the charter on the Articles of Incorporation are mine and my wife's. How can she sue me? And if she can, since I bought a corporation, can she touch my personal assets? How much would it cost to consult with a lawyer for an hour? Thanks!


Asked on 1/02/02, 11:15 am

3 Answers from Attorneys
David Lease Smith, Lease & Goldstein, LLC

Re: Business Charters

If you were aware of the court's order and were acting as a straw purchaser for the Wife's ex-husband, then there could be some liability. If you were acting on your own, the mere filing of a corporate charter should not cause you liability. However, if the wife has been operating the business under the expired corporate name, even though the corporate charter had expired, she may have Trade Name protection under the Lanham Act.

The issues you raise are complex and I would strongly urge you to talk with an attorney. I would be happy to meet with you to discuss your case. My initial consultation fee is $200.00. Please call me at (301) 838-8950.

Read more
Answered on 1/02/02, 2:43 pm
Alton Drew Alton Drew, LLC

Re: Business Charters

Your friend's ex-wife will not be suing the corporation. She is coming after you for conspiracy. Having a corporation will not protect you in this instance. She is not claiming that your corporation is out to hurt her. She is claiming that you are out to hurt her. Since her suit will be against you, your personal assets are at risk. Her counsel will raise the irony of her husband starting a competing business and his friend using, albeit legally, a corporate name she once possessed legally.

Is your company operational yet? Are you in the same line of business as the ex-wife? Have you a contractual relationship with the ex-husband? Have you been going after her clients?

My initial consulting fee is nada. I only charge when you decide to accept me as your attorney. Take care.

Alton Drew

Read more
Answered on 1/02/02, 10:41 pm
Robert Sher Wagshal and Sher

Re: Business Charters

If your associate's former wife forfeited the charter and you were able to purchase it, I doubt they would have a viable cause of action against you. A simple way to check the availability of a corporate name, which you may have done, is to call the Dept. of Assessments and Taxation or go on their website.

I strongly suggest you schedule a legal consultation with an experienced business law attorney. My firm has been representing small businesses in the Washington metropolitan area for over 25 years. We offer an initial legal consultation for $200. I would review any documents you have, including the attorney letter you received, and advise you how to respond. You can telephone me for an appointment at the number listed below.

Robert Sher

301 986-4555

Read more
Answered on 1/02/02, 12:37 pm


Related Questions & Answers

More Business Law questions and answers in Maryland