Hello, I am an LLC in NY. What I want to know is worst case scenario of what happens to my financial situation (in general) assuming the following: My LLC business is sued for trademark infringement in federal/state court, then I lose case and they come after me for whatever monetary collection BUT there are no monies/assets are to be found within my llc, but with me personally?
1 Answer from Attorneys
Intellectual property infringement is a personal tort action. In most cases, the individuals are sued along with the entity and there is no way to dismiss yourself out because infringement requires a personal act. If it were any other way, one could create an LLC for example then make copyright infringement your business model and if sued, just let the entity take the hit, create a new one and start all over again.
Before you take any action, I suggest that you consult with a lawyer in private and discuss your situation and best course of action in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient. Our firm is now referred by the American Bar Association (see under the New York section):
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.