Legal Question in Credit and Debt Law in California

Several years ago I walked away from my firm (my wife and I held I00% of the stock) due to lack of business. I retired, but with no pension or other compensation from the company. There is no business, bank account, or office. I did not file any formal documents of dissolution with the State of California.

? Can my wife and I be held accountable for any past or future liabilities of the company?

2) My former company and I are being sued for non-payment of an invoice for manufacture of an item and I am counter suing for breach of contract.

? Does the loosing party always have to pay attorney’s fees? I understand that the “American Rule” is upheld in California. Is this correct?

Asked on 10/18/18, 5:20 pm

1 Answer from Attorneys

Scott Jordan Jordan Law Office

The answer to your first question is, Yes.

The answer to your second question depends on whether or not the parties had a contract, which, if there is a provision for attorneys fees will be enforced. If not contract, the American Rule will apply, with the exception if there is a judgment for fraud.

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Answered on 10/18/18, 5:48 pm

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