Corporate Law Judgement for lawyer fees

[kohany]

Recently our corporation instituted a lawsuit against our landlord for a breech in our contract-we lost the case and the opposing counsel was granted attorney fees. The granting of these fees was under the assumption that this was a frivolous lawsuit. It was not. Also, this lawyer stated in a certified letter to me and my partner that he would break the corporate veil and come after us personally. We have since sold this business as the landlord sold his property and the new owners bought our business. This transpired well after we instituted our lawsuit. The business no longer has any assets. How will he go about this and is there a way that I can protect myself personally?

 

[seniorjudge]

Q: How will he go about this and is there a way that I can protect myself personally?

A: Did you appeal the judgment? In any event, if he pierces the corporate veil, your personal assets will be sold to satisfy the judgment. Best make a settlement with the lawyer now and save yourself a lot of problems. That means you will have to give him money.

 

[David_Staub]

... this lawyer stated in a certified letter to me and my partner that he would break the corporate veil and come after us personally. ... How will he go about this ...?

Piercing the corporate veil is a common law concept that basically allows a creditor to ignore the existence of a corporation or limited liability company and go after the assets of the owners of the business. I did a program for the Chicago Bar Association on the topic a couple of years ago and posted the outline titled Piercing the Corporate Veil - A Primer and Update" on my website. The outline is geared to attorneys and is based on Illinois law (states differ in how the concept is applied), but may help you understand the typical factors. You will need an attorney who is familiar with the laws of your state to examine your own facts more closely.

... and is there a way that I can protect myself personally?

Probably not, at this point. There are a number of asset protection tools available to people who want to help insulate their assets from potential creditors. Whether they make any sense in your case is a question for a lawyer in your area, but generally if you undertake steps to move assets once a creditor has come forward, it is too late.

 

[seniorjudge]

Piercing the corporate veil is a common law concept that basically allows a creditor to ignore the existence of a corporation or limited liability company and go after the assets of the owners of the business. I did a program for the Chicago Bar Association on the topic a couple of years ago and posted the outline titled Piercing the Corporate Veil - A Primer and Update on my website. The outline is geared to attorneys and is based on Illinois law (states differ in how the concept is applied), but may help you understand the typical factors. You will need an attorney who is familiar with the laws of your state to examine your own facts more closely.



Probably not, at this point. There are a number of asset protection tools available to people who want to help insulate their assets from potential creditors. Whether they make any sense in your case is a question for a lawyer in your area, but generally if you undertake steps to move assets once a creditor has come forward, it is too late.

I agree and would just like to add that since this was ruled a frivolous lawsuit, I would certainly be getting legal representation as soon as possible.

 

[kohany]

I just received this judgement and of course, it affects the corporation only at this point. THis particular lawyer is adamant on his fees in excess of $75,000.00 as we tried to settle with him