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Can You Sue a Company That is Going Out of Business in 2023?

Absolutely, you can sue a company that is going out of business. As a matter of fact, the earlier you sue such a business the better for you. This is so because if you allow the business to go into extinction, you are likely going to have yourself to blame because you may not be able to sue a business that is no longer in existence.

The idea is that if a business is sued and they have a case to answer in court, even if the business is dissolved when the case is still in court, the case will continue and get to a logical conclusion.

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People sue businesses for various reasons and there are countless numbers of lawsuits against businesses not just in the United States but all across the world. Note that the person suing the business may or may not win the case. But the bottom line is that the business of suing businesses is indeed a thriving business and some lawyers are making a kill from such enterprise.

Please note that some cases are handled and brought to a logical conclusion within a few weeks or months while some cases take years for judgment to be passed. Hence the earlier you get started the better for you. You should also make sure you file your case sue in a court that has lesser cases before the judge. With that, you will likely get a judgment before the business eventually ceases to exist.

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Can You Sue a Business That No Longer Exist?

You cannot sue a business that longer exist. This is so because a business becomes an entity when the business is registered and active. But once the business is dissolved legally and becomes inactive, it means that the business no longer exists hence it will be difficult to sue an entity that no longer exists.

Just as you cannot sue a person that does not exist. In the eyes of the law, a business that no longer exists is like a person that is dead and buried.

For example, if you institute a case against someone who is dead, who do you expect to be on trial, and if a judgment is passed and the person is asked to pay damages, who do you expect to pay the damages? Or if the person is sentenced to jail, who will serve the jail term?

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For that reason, it is not a wise decision to sue a business that no longer exists because it is most likely going to be an effort in futility.

But it is important to note that you cannot rule out the fact that in some countries, a business that is no longer in existence can be sued as long as the owners of the business are still around. Again, this will depend on the structure of the business before it went under and what the law says in the country that you intend to sue the business that no longer exists.

In conclusion,

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Before you decide to sue a business that is no longer in existence, you should make sure you consult with a business lawyer to find out what the law says about making such a move. With that, you will be properly guided.