Legal Question in Business Law in Utah

Business Being Sued

I am a Partner of an LLC, that is currently in danger of being sued, to keep it simple a terminated ex-employee has spread lies to a competitor that we have infringed upon their copyrights.

We are currently in a phase where we are just trying to settle without going to court as it will cost us too much to defend ourselves, we do have a Lawyer, but the competitor has the �big dog�, which means we lose if we win (AKA cost to defend our selves) and we lose if the court favors the lie.

My biggest concern is that if any judgment is awarded that I have taken all the steps to protect my family, and my personal assets. What are your recommendations to ensure that judgments are not passed on to the partners of the business?

Thanks


Asked on 5/23/08, 4:42 pm

1 Answer from Attorneys
Randy Lish Randy M. Lish, Attorney at Law

Re: Business Being Sued

The best protection is to make sure that you have kept your business affairs completely separate from your personal affairs. This means that you cannot have had the business pay for personal expenses, nor paid for business expenses from a personal account. You also should have records of annual meetings, resolutions of major decisions, etc. even though not required for an LLC. If you have further questions, please call me.

Randy M. Lish

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Answered on 5/27/08, 11:09 am


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