Suing a Dissolved or Inactive Corporation

Nearly every attorney will face the inevitable situation of preparing a case only to learn that the potential defendant has gone out of business. Other times, the business goes under while the case is in full swing. Although in most states an inactive business can still be sued, there are several obstacles the attorney will face that do not exist when suing an active business.

This introductory course, presented by Russo & Toner attorney Victoria Kennedy, will cover the procedural “how to” of commencing or continuing an action against an inactive company. We will discuss the pros and cons of pursuing these claims, and explore topics attorneys and clients alike might want to consider. Although the focus will be from the plaintiff’s side, we will also touch on issues that defense attorneys face in these matters.

1. Determine the legal status of the defendant, e.g., Dissolved vs. Inactive
2. Discern the limitations of liability for successor entities
3. Discuss how to void transferred assets
4. Discover other assets that might be available to pay the claims, e.g. insurance policies
5. Examine State vs. Federal Statutes of Limitations