As an employee of a company that has gone out of business, can I be sued personally for anything?
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As an employee of a company that has gone out of business, can I be sued personally for anything?
We were told the owner was closing the doors and we would have to sign up for unmployment almost 11 months ago. My last name happens to be part of the business name. I have no ownership or stake in the business; I was just an employee. The other party is claiming stolen property, misuse of funds, etc. I have been served with papers and given 20 days to respond to the claims and forward answers to the other parties attorney.
Asked on June 30, 2011 under Employment Labor Law, Minnesota
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The circumstances under which your last name was made part of the business needs to be explained more fully here. In the mean time go and seek legal counsel as soon as you can. If you do not answer the complaint filed in court a default judgement will be taken against you and then they will come after you personally for the money - maybe. I say maybe becuase if this was a corporation there may be coverage there against personal liability. But there are too many pieces of the puzzle missing here. Have the attorney also explore the possibility that you were covered under an insurance policy, although thievery generally not insurable.
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