The following are answers to some of the most common questions we receive on business law cases (note: the following answers are based on California law):
– Q: Can a corporation’s owner be held personally liable for a corporate debt? A: Maybe, but it’s hard to prove. Under California law, a corporation’s owner can be held liable for a corporate debt under the “alter ego” theory. There is no exact formula for finding liability under the alter ego theory, but usually it will involve one or more of the following: (1) failure to maintain corporate formalities (i.e. minutes, issuance of stock, required corporate meetings); (2) commingling of assets between the corporation and the corporate owner; and (3) formation of the corporation as a mere shell to avoid payment to the corporation’s creditors.
– Q: Can attorney fees be recoverable in a lawsuit? A: Probably not unless there attorney fees that are recoverable in an applicable statute; or attorney fees are recoverable pursuant to a clause in an applicable contract.
– Q: Does your firm handle business cases on a contingency fee basis? A: LT Pacific Law Group does not represent defendants of business cases on a contingency fee. For certain cases for plaintiffs that have clear liability against a defendant that has substantial assets, we may be willing to handle such cases on a partial contingency fee (i.e. a reduced hourly rate + a contingency fee) or a contingency fee basis. Contact LT Pacific Law Group for a consultation as to what fee structures can be offered to your case.