Legal Question in Credit and Debt Law in Pennsylvania

I own an LLC and I'm having a legal dispute over an auto repair bill. The shop currently has possession of the vehicle and won't release it until payment is made. If the repair cost is unjust and cost more than the vehicle is worth, am I personally liable for the bill if I close the LLC


Asked on 4/06/15, 6:26 pm

1 Answer from Attorneys

I do not understand what you having an LLC has to do with a repair bill.

Who owns the car? The LLC or you? Who authorized the work?

The shop has a mechanics lien on the car and is correct that they will not release the car until the bill is paid. If they do, they will be releasing their lien. What you need to do is either pay the bill and then take the car to someone else and sue for recovery of the amounts paid which are unjust or else go now to a consumer lawyer and see if the motor vehicle shop may have violated the consumer protection laws in PA.

What you propose is ... well ... just plain stupid. Why would someone close an LLC because of a car dispute? That is not the way to resolve a problem. You are personally liable if you own the car and authorized the work. If the LLC owns the car, did you sign the repair work order as member/manager of the LLC? There is a way to dissolve a business and it usually requires that debts of the business be paid. There is also a concept in law called "piercing the corporate veil" which means that courts will disregard the corporate/business form and impose personal liability if warranted by the facts. Whether they will do that here I cannot say - this is beyond my scope of expertise and I have not researched it lately.

This is not a credit/collections/debt issue. It is a consumer law issue and I am only generally familiar with it. My advice would be to either re-post your question to consumer law attorney in PA or go and see one and pay for a consult of 30-60 minutes. If the repair shop has indeed engaged in unfair/deceptive trade practices, then perhaps the lawyer can contact thge shop on your behalf and can negotiate a resolution.

If not, the thing to do woiuld be to try and pay, either to an escrow agent until the dispute is resolved or just pay under protest and then pursue your claim to get your money back. And resolve NEVER to do business with this outfit again.

In the future, use only ASE (automotive service excellence)-certified repair shops. Its not a guarantee, but to get the certification, then shops cannot engage in shady behavior. You can go here: https://www.ase.com/Home.aspx

to find an ASE-certified technician near you. If you get the car back ask for all the old car parts and a detailed printout of what work was done and I would immediately take the car to an independent mechanic like this and your repair bill and the used parts and explain what the problem was and see if (a) the work that you paid for was actually done; (b) that the work for which you paid was done right; and (c) that no violation of the law/shady practices occurred. Depending on what you find out, then you can go after getting some of your money back.

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Answered on 4/09/15, 11:27 am


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