Legal Question in Business Law in Louisiana

Can An Individual Be Personally Sued If Protected By A Corporation Entity?

I am the owner of a retail store. A suit was filed agsinst me and my wife personally. We are incorporated in the state of Louisiana. The suit was filed in small claims court. Should the suit against us have been filed on our corporation? What do I do to make sure a judgement, if against us, is rendered under our names? What can I do to make sure that the corporation becomes the liable party. The brunt of the case is regarding a consignment contract in which the consignor failed to sign the agreement contract, but left the items for us to sell, then claimed later that we undersold the items. We keep control of selling prices per the contract. We feel although it was not signed, she left it 2 months and then came to pick up a check for the sold item, and so feel that a verbal "consent" was in effect. The item was a necklace, a gift of which she did not know retail. We have evidence that shows and proves the selling price, and that the price was fair. So verbal vs. Written agreement is the question. Can it be thrown out forcing her to refile against the corporation and not us personally.


Asked on 3/19/98, 9:43 pm

1 Answer from Attorneys
Richard Lemmler, Jr. R.P. Lemmler, Jr., Attorney At Law

What a question!

I had a hard time trying to keep track of your question/problem as you moved from individual versus corporation to verbal versus written contract. I think you need to approach this systematically and in steps versus using a "shotgun" and trying to hit everything/anything all at the same time. I would need to see the contract/documents involved as well as the lawsuit before I could determine whether or not you and your wife are proper parties to the lawsuit. If not, you may be able to get yourselves dismissed and/or the corporation substituted in your places--depends on the facts, language in documents, etc. Once that step has been taken and the "identity crisis" resolved, you can start dealing with the contract issue(s).

I, of course, would suggest that you not try to handle litigation on your own but rather consult with an attorney and/or hire an attorney to represent your interests. Delay in doing so and/or responding properly to the lawsuit could result in loss of your rights and/or judgment against you.

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Answered on 3/30/98, 11:35 am


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