Results 1 to 5 of 5

Hybrid View

  1. #1
    Join Date
    Oct 2012
    Posts
    1

    Default Can You Still Sue a Company if It is in Insolvent Liquidation

    Can you still sue a company if it is in insolvent liquidation?
    If you were injured by a company's product and they go into bankruptcy and as a result insolvent liquidations, is it possible for you to sue to company in order to receive compensation for damages? Also, if the company is a wholly-subsidiary, would it be possible to file a claim against the parent company? If I was able to prove that the parent company told its subsidiary to cut back on research and development on safety components, which caused injury to some individuals, would I be able to say that this would not fall under privity of contract and that the parent company owed a duty of care to the consumers of its subsidiary company. Please refer my to your sources. I would be very much obliged.

    But the company is a subsidiary of a much larger company. The company gave orders to its subsidiary to cut back on research and development. More capital was required, but the directors of the company refuse to provide its subsidiary with any more capital and instead order the board of subsidiary to cut back on its research and development. Accordingly, the directors of subsidiary agreed to cut back on research into the safety features. However, it turned out to be unsafe due to a defect in the design and numerous accidents occur. How would it be possible to hold the parent company at fault?

    Is Vicarious liability only for employment law?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can You Still Sue a Company if It is in Insolvent Liquidation

    This is in what U.S. state, and why did you post it as a question about malpractice?

  3. #3
    Join Date
    Jul 2012
    Posts
    479

    Default Re: Can You Still Sue a Company if It is in Insolvent Liquidation

    You COULD sue, but it'd almost certainly be stayed (it might be moved to be heard by the bankruptcy judge).

    "Also, if the company is a wholly-subsidiary, would it be possible to file a claim against the parent company?"

    You CAN, but that doesn't mean it would be appropriate/successful.

    "Is Vicarious liability only for employment law?"

    No.

    Please seek local counsel; this sort of thing is absolutely not a DIY project.

  4. #4

    Default Re: Can You Still Sue a Company if It is in Insolvent Liquidation

    It is very difficult to say because company is already bankrupt which shows that it is not able to pay off its debt. So you can consult your local adviser for more details.

  5. #5
    Join Date
    Feb 2010
    Location
    CT & IL
    Posts
    5,273

    Default Re: Can You Still Sue a Company if It is in Insolvent Liquidation

    Options may also depend on type of company too .... corp. S LLC etc

    1. Sponsored Links
       

Similar Threads

  1. Warranties: Extended Warranty Company in Liquidation Status
    By amartin2466 in forum Cars and Dealerships
    Replies: 1
    Last Post: 02-08-2012, 06:16 AM
  2. Business Disputes: Franchise Brand Liquidation
    By hirenumradia in forum Business Law
    Replies: 1
    Last Post: 11-25-2011, 05:17 AM
  3. Chapter 7: Capital Gains Taxes and Chapter 7 Liquidation of My Home
    By Craigm in forum Bankruptcy Law
    Replies: 3
    Last Post: 01-30-2011, 06:36 AM
  4. Debt Collectors: Insolvent - What To Do?
    By SJW in forum Debts and Collections
    Replies: 2
    Last Post: 05-22-2008, 06:43 AM
 
 
Sponsored Links

Legal Help, Information and Resources