My question involves business law in the state of: UT
I owned a business that was setup as a LLC with a single member, which was myself. During the operation of the business I contracted with an acquaintance that owned a small graphics design company to design a website for my company. There was no written contract, only verbal discussions about price, timeframe, etc.
The web designer designed most of the site (about 65 to 70%), but never fully completed it, but enough to be somewhat usable. I found out later that the main image on the homepage (and possibly others) was actually a copyrighted stock image that he did not pay to use- he stole it. I also found out in a subsequent conversation with him that he has thousands with illegally obtained copyrighted images that he trades with a stock photo piracy ring. I got uncomfortable with the whole situation and the site was taken down, coincidently I went out of business about the same timeframe. I'm convinced the extended timeframe (1 plus years) it took for him to finally get most of the website up contributed to the business' failure.
As mentioned the LLC expired and no business has been transacted in about 2 1/2 years. I recently received notice that I was being sued, not the out-of-business LLC, by me personally for a cost he has valued his work at, which is more that we ever discussed.
- Can he sue me personally for the web design or am I protected by the LLC since all discussions and work was transacted on behalf of that entity?
- And since the LLC is now out of business (and has been for 2 1/2 years) and has no remaining assets is he out of luck in ever collecting against it?
- If he has no legal recourse against me personally, what do I do to get the case dismissed?
Thanks in Advance!