Legal Question in Business Law in New York
Small Business Lawsuit
Can a company that has gone out of business be sued?
1 Answer from Attorneys
Re: Small Business Lawsuit
That's a really good question.
The answer depends on whether the company has been dissolved by the Secretary of State.
If the company has been either voluntarily or judicially dissolved, the company cannot be sued for anything that happened after its date of dissolution; that would be like trying to sue a dead person. If, though, the company just fizzled and no one bothered to actually dissolve it, the company does still exist on the books and can therefore be sued.
Statues of limitations being what they are, though, I suppose it is possible that even a company that has been dissolved could be sued for something that occurred while it was still in business. I don't know why that would happen; the plaintiff would get nothing out of such a lawsuit since the company is defunct at the time of suit.
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