Added as defendant late- veil peircing

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noquitter

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My S Corporation was sued, and placed into Receivership according to the original complaint filed July 07. The Receiver is adversarial toward me, and has not defended the corporation at all, and it appeared that the whole thing was moving toward summary judgment ($4 million plus). A slam dunk for the Plaintiff on getting a judgment, since the Receiver is helping him from an insider position.

About a week ago, the Plaintiff filed an amended complaint asking that I be added as a co-defendant personally, with arguments about piercing the corporate veil. I was not served, but my adversarial Receiver said "no problem- let's add the ex CEO to the party". How thoughtful, but I'd rather not. The judge granted the motion, and I received a notice today that I have 21 days to file a pleading (I assume for my own defense).

This amended complaint said on its cover to SERVE me with notice of the motion.

I was not served, only the corporation was served. What are my rights?

1. Can I be added without being given notice to argue against it? If not, what do I file to get it reversed so I can defend against it.

2. Is it proper to be named as an additional defendant in a lopsided lawsuit where the Receiver has likely ruined any chance I have to win by giving biased and inside information to the other side for eight months? Shouldn't this be a mulligan? It seems to be fair, I should start from the beginning with the Receiver to defend the company- as he is not at all interested in seeing me exonerated- nor the company.

I have had no control or input in the defense of my company. I have my hands tied behind my back- and these guys are ganging up on me. The Receiver has nothing to lose, and the Plaintiff is getting information he would not have gotten necessarily if I were defending this from day one.

3. Is it proper for Plaintiff to argue personal liability before any liability has been proven? There is no judgment against the corporation. Essentially what this amended complaint does is put me on trial for the sins of the corporation- without the corporation having been found guilty of anything- and without affording me an opportunity to fully participate in my own defense. This serves to be highly inflammatory and prejudicial in my opinion- as there is an inordinate amount of press coverage.

4. It hasn't been proven that me and the corporation are "one" - yet I am being asked to defend myself as such. If I am one with the corporation, what right do I have to all the pertinent information, motions, evidence, subpoenas, depositions etc that the Receiver has been conducting while an "agent" of my former corporation. If we're "one" I would think the Receiver has to give me access to all things corporate?

5. My case involves plaintiffs in all 50 states, few in VA. My ex CFO lives in PA, other witnesses (former employees and former customers) also live in a myriad of states. Do I have a diversity action to move to Federal Court, and if so- am I better off there?

6. Would a jury trial be better? If so- when do I demand it? I am coming into this cold- without ever being named in any other action.

7. The true villians in my opinion are my ex CEO and ex CFO - and I'd like to get them in on the party- or should I not? The issues I am dealing with are largely due to altered financial records, false information they provided to me, and shady dealings I was unaware of, including stealing business secrets to start up another company- which they did.

Thank you for your information and advice. I appreciate it.
 
You will not find an attorney for this situation pro bono. It's not that interesting, it's work. Lots and lots and lots of work. From your description, theres going to be hundreds, if not thousands, in *copying* costs--no one's taking that for free.

You have a complex case. You need an attorney. I don't care if you can't afford one. Since this can mean all the money you have anyway, if you truly can't afford an attorney for the lawsuit, see a BK attorney immediately and see what assets you can save.
 
Thank you for your calibration

SeniorJudge,

I appreciate your post. I see how much work will go into defending me, and I am not that interesting for an attorney to want to defend for free <grin>

I have less than $75K in personal assets. Car, jewelry, no cash. Hence, the lack of counsel.

To prevail in this case, even with a seasoned trial attorney with experience in defending corporate structure, will be a challenge.

That said, it goes against my fighting spirit to not defend myself against this situation, even when I have no lawyer.

If my prospects are meager to win, should I fight anyway (nothing to lose- except time I could be using to raise capital and start another business etc)

I will meet with a bankruptcy attorney next week.

Thanks again.

PS: If the Plaintiff filed an Amended Complaint to add me as a defendant to a lawsuit against a corporation without serving me- and the Judge entered an order- can I file a Motion to Ask The Judge Not Do That Sort of Thing Because it is Unfair-And I wish He Would Reconsider Because I Didn't have A Chance to Appear in My Own Defense?

In other words, is this something I can fight. The order claims there was "no objection". Well, I object!
 
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