Legal Question in Civil Litigation in Pennsylvania

Re: Being sued because of alledged association

The plaintiff building owner is probably using the theory that your company is a "successor" to the prior company which may have done something to cause the fire. Successor liability is recognized in PA under certain conditions, and the facts you mention suggest that the plaintiff's theory is not entirely frivolous.

In short, this means that the plaintiff is not likely to just let you out of the case voluntarily.

You need an attorney to defend your company and raise the defenses which you have described. This successor liability is a fact-sensitive issue, which means, basically, that it could go either way, so adequate representation is important.

True, you shouldn't have to pay for a lawyer. There's two ways that a lawyer should be provided by someone else.

First, your commercial insurance policy should cover this claim. Submit the claim to your business insurance carrier IMMEDIATELY! That's what you got it for. You did get insurance, didn't you?

Second, the seller of the prior business should indemnify you. It's customary to include an indemnity and hold harmless clause when a business purchases assets, cusomter lists, etc., so the seller will be responsible for any claims which arose "on his watch." But if you weren't represented by counsel in that purchase, maybe you aren't protected by such a clause.

The theme here is an ounce of prevention. If you haven't covered yourself in the above ways, you're facing the consequences of not protecting yourself. Trying to do without counsel now that you've been sued is another false economy.

Re: Being sued because of alledged association

If there is sufficient insurance coverage for the loss from the original co. the plaintiff's attorney may dismiss you from the case after you explain the distinction between the entities. However, if there is no insurance and the co. went out of business, it may be argued that you are a successor because you are relying on the "good will" created by the original co. by using a similar name and engaging in similar activities. However, if you have already been served with a complaint you need to get an attorney to make sure there is not a default judgment taken while you try to straighten out the situation.