If I closed my incorporated sub-contracting business 6 years ago, what liability do I have for a project done 9 years ago that may or may not involve me?

UPDATED: Jan 5, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Jan 5, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I closed my incorporated sub-contracting business 6 years ago, what liability do I have for a project done 9 years ago that may or may not involve me?

Asked on January 5, 2012 under Business Law, Minnesota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

1) Depending on your state and the nature of the potential claim (e.g is for breach of contract? for a loan connected to the project? for negligent construction? etc.) it may well be too late for any claim to be brought. All causes of action are subject to what's called a "statute of limitations," which sets forth the time limit on bringing a lawsuit; once the statute passes, no one can take legal action. Each state sets its own statutory periods, and they vary by the type of cause of action. 9 years, however, is longer than most statutory periods in many states, so it may be too late for anyone to sue.

2) If your business had been an LLC or corporation, then you would likely be immune from any business-related liability unless you personally guaranteed a debt or contractual performance, unless you personally caused some injury or damage (e.g. you were the worker who broke something or crashed a vehicle), or for certain special types of claims (certain tax related claims, for example). If it was a sole proprietorship, however, you could be personally liable for business debts or causes of action.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption