deposit and company went out of business
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deposit and company went out of business
I am a small window and door installation company in South Florida and have
provided a deposit to a window manufacturer which has shut their doors. What is
my right if any for the deposit we sent them and did not get the material we
ordered. I spoke with them two weeks ago and they told me that my order was on
scheduled.
Asked on February 16, 2018 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
If the company with which you placed the order was not an LLC or corporation, you can sue the owner(s) personally for the money to recover it: in a non-LLC or -corporation, there is no legal distinction between the company and owner(s) and the owner(s) are responsible for the company's debts.
If the company was an LLC or corporation and someone has bought the actual LLC or corporation (i.e. the business entity), the LLC or corporation still exists under new ownership and is still responsible: it has to honor your order or repay your deposit and you could sue the LLC or corporation if they don't.
If the company was an LLC or corporation and no one has bought the actual LLC or corporation and the LLC or corporation is no longer operating, there is probably nothing to be done: your deposit may well be lost. The LLC or corporation is still technically liable for it, but if it is insolvent, you won't get the product or money from them.
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