Legal Question in Business Law in New York

Hi,

I work for a apparel importing company based in New York. We use manufacturers from both in the US and overseas. Here's my dilemma. In June, we order 30,000 pairs of Ladies from XYZ company. Being that I'm the production coordinator, I issued out the purchase order on my company's behalf and was responsible for all of the email correspondences. Now, 6 months after our company receive and delivered the goods, our company has still not paid them their invoice which was due on 7th day after receive of good. In other words, it is 5months overdue. I've receive a call and email from manufacturer that they will sue our company and including me since I was the one that placed the order and follow ups. I'm dead worried. Please let me know would the manufacturer have any case against me? I do not want to have my personal asset involve in any kinds of lawsuits. Even this is suppose to be a company to company lawsuit, I am not a signer anywhere in the company's book. All I did was sent out emails and followup. Please HELP!!!

By the way, the manufacturer we use is based in Los Angeles in this case.


Asked on 12/22/10, 12:38 pm

3 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

I don't see how you could be personally liable for your company's breach, since you are not a party to the contract. However, the manufacturer might allege that your company committed a fraud and that you were party to the fraud. That would give it a basis to sue you, though the fraud allegations would be hard to prove even if they were true.

It's very possible you and/or your company will be sued in Los Angeles rather than New York. If that happens, please feel free to contact me directly.

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Answered on 12/27/10, 12:47 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree with the other attorney answer I only add that you should be proactive and seek legal advice before anything happens. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/27/10, 2:23 pm

You have not indicated whether you have any ownership interest in the company. If you do, then a claim of fraud could pierce the corporate veil and you may be held responsible.

If, however, you are an employee there are certain actions that you should be taking right now to ensure you are protected in the event of a law suit.

As my colleagues correctly noted, you may indeed be sued regardless if you are or are not responsible. Therefore, you should retain a business and/or employment law attorney to protect your rights (and your sanity) as I'm sure this is very difficult time for you.

Feel free to contact me directly with any further questions,

Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

email: Info (at) TheLegalist (dot) com

Disclaimer: This posting has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice. You should always consult an attorney admitted to practice in your jurisdiction for specific advice.

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Answered on 12/28/10, 5:38 am


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