Can I sue the owner of a local oil company in small claims court if the company is a corporation?
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Can I sue the owner of a local oil company in small claims court if the company is a corporation?
I was ripped off by a local oil company. After getting taken I checked them out on-line and have found hundreds of people that say they were ripped off by them. It seems the owner hides behind the “corp” status. Both I and the company are in MA. The company is listed as a corporation.
Asked on November 13, 2010 under General Practice, Massachusetts
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You may call it "hiding" behind the corporation status, but the very purpose of a corporation is to shield owners from personal liabiltiy for corporate acts. So in more than 99% of cases, you cannot sue the owner of a corporation personally for the acts of his or her corporation. The exceptions are:
1) The owner personally did something wrong--e.g. if the owner personally stole your money, for example, or did acts that constitute fraud--you may be able to sue him for his personal actions, and not as an owner of a corporation.
2) In a VERY few cases, it is possible to "pierce the corporate veil" IF you can show that the corporation was essentially pretextual--it wasn't really a functioning company; for example, its moeny and the owners was comingled--and it's clear that the owner was, as you put it, simply trying to hide behind an assumed corporatate status and deliberately using it as a tool to commit fraud or other crimes. However, be warned--it is rare that the corporate veil is successfully pierced.
If you want to explore these options, you will almost certainly need to consult with and retain an attorney to help you--these are not easy actions to bring.
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