Legal Question in Personal Injury in Massachusetts

Re: Suing a Corporation

There certainly is a risk in the corporation declaring bankruptcy. That said, they are not off the hook with respect to responsibility. You should immediately talk to a lawyer to further explore your options.

Re: Sueing a Corporation

You have not said about the insurance and personal coverage of the driver of the other car.

I am not sure how you discovered the business had an insurance lapse. It also sounds like you or your agent spoke to the establishment.

The corporation's owners may have unrealized liability if they failed to take certain actions to preserve the corporate veil.

You have not said if your son is being represented by counsel, and what actions are contemplated or already taken.

I agree with David Summer, if you have not done so, this is a matter which needs the attention of an attorney.

You can contact me if you need assistance or have any further questions.

Re: Sueing a Corporation

David;

It sounds like you have already talked to a lawyer about this situation. If that is the case, he or she should be able to give you a better answer simply by virtue of having more detailed information.

The fact that the bar/restaurant doesn't have liability insurance does not "take them off the hook" in terms of responsibility or liability, but it does create some difficult issues about whether your son will be able to collect money from them for their liability. The question becomes, is the bar worth it? Or are there any individuals at the bar who were negligent and who might have the ability to pay a settlement?

The possibility of a defendant (whether a corporation or an individual) filing bankruptcy to avoid their liability is a possibility in ANY case. Whether it is a real issue in your case depends on whether the company truly is "bankrupt". Declaring bankruptcy isn't quite as easy as most people think it is. If the bar has any significant assets, then even if it does file for bankruptcy, your son might still be able to get a decent percentage of what the bar "owes" him. One would need a lot more details to be more specific.