Corporate Law Judgement Against a Corporation in midst of Ownership Change

[jojosmommy]

I am taking a corporation to small claims. Through this process I have found out that the business has recently gone through ownership change.

My court date is not for another month. I have amended my claim to include the owner at the time of my purchase as one of the defendants along with the corporation. I've been told that the business has a huge "Going out of Business" sign in front of the store. The business is now being operated under a different name.

Should judgement fall in my favor...who would be responsible to pay my settlement? Would the judge in fact hold the owner accountable for the settlement?

Any input would be of help.

Thanks.

 

[dee_dub]

One of the reasons people do business in the form of corporations is precisely to take advantage of limited liability. Why do you think a judge should find the old owner personally liable? Conceivably, you may receive judgment against the company but not against the old owner.

If you get judgment against the corporation only, it doesn't matter who the owner is. You collect on the judgment against the corporation. If it's going out of business, you get in line with all the other creditors.