Can you sue a bankrupt, one-man-show corporation?

[savvy_consumer]

What is the name of your state? South Carolina

Some guy sold a product over the internet that is responsible for injury to a 5-year old child. (Thing was supposed to be child proof, was marked 3 and up and instead shattered like a wine glass during normal use)

Research on the guy who sold it shows he's running an incorporated business based in canada that manufacturers and sells these items over the net. Turns out this "mighty corporation" is actually some guy working in his basement who does all the manufacturing and selling himself (incorporated for tax purposes I guess?)

I'd be happy with just a refund and for this guy to stop selling what I think is a dangerous product but I'm curious as to what would happen if push comes to shove should I decide to sue. In particular:

- What happens if he folds and closes his business? I don't think this corporation has many assets if he's working out of his home ... can he be sued as the chief officer and / or sole shareholder?

- How liable is he personally for this product? Will he just brush me off because his personal assets cannot be touched?

Thanks in advance for any advice!

 

[BelizeBreeze]

Your initial question is: Can you sue a one-man show which is incorporated and the answer is of course you can. Got about $20,000 to start the case?

 

[savvy_consumer]

Thanks for the reply - but I'm still concerned that he might declare bankruptcy if I hit him with a big lawsuit. Suing Wal-Mart is one thing; suing a small-time guy working out of his shed or garage gets me worried about his ability to pay up to the lawsuit even if I win.

What happens if his business goes belly-up because of the lawsuit? Is he liable beyond the assets of the incorporated entity?

 

[smorr]

He's running a business based in CANADA out of his basement or garage. Is he incorporated in Canada or the U.S., or both? Caveat Emptor... (let the buyer beware). Yes, he may just fold up if you begin legal action, but you'll need to find out first what legal action a U.S. citizen can take on a Canadian citizen who is selling unsafe products over the internet and take it from there. I'd be calling my lawyer first.

 

[savvy_consumer]

Canadian citizen, canadian-registered corporation.

I was thinking of talking to a lawyer but I don't want to get too deep in the hole just yet ... especially if there is a reasonable chance this guy is just going to duck out and close his business when he's hit with a lawsuit.

Just for my general knowledge, once the sole shareholder of a corporation (Canadian or American) closes his business, what happens to the lawsuit against his company? Will the most I ever get for a settlement be whatever the business was worth or can he be forced to sell his personal possessions to pay up? What if this clown's corporation is already in debt?

 

[seniorjudge]

Canadian citizen, canadian-registered corporation.

I was thinking of talking to a lawyer but I don't want to get too deep in the hole just yet ... especially if there is a reasonable chance this guy is just going to duck out and close his business when he's hit with a lawsuit.

Just for my general knowledge, once the sole shareholder of a corporation (Canadian or American) closes his business, what happens to the lawsuit against his company? Will the most I ever get for a settlement be whatever the business was worth or can he be forced to sell his personal possessions to pay up? What if this clown's corporation is already in debt?

US law only.

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