Newark, NJ asked in Business Law for New Jersey

Q: Lawsuit against an S-Corp

A New Jersey S-Corp entity which closed in July 2009 is a co-defendant in a lawsuit with the sole owner of this S-Corp. The lawsuit has resulted in a judgment against the owner as well as the closed entity but a motion to vacate the judgment is going to be filed. The owner owns another New Jersey S-Corp (100% owner, established April 2008) which has not been named in this lawsuit.

The owner wants to defend himself pro se but can't defend the company since only an attorney can represent a corporation in New Jersey. Since the previous entity is closed, can the owner ignore the part of the suit against the entity and defend himself pro se? Can the lawsuit against the closed entity affect the other entity and if so, in what way?

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1 Lawyer Answer
Christopher J. Basner
Christopher J. Basner
  • Haddonfield, NJ
  • Licensed in New Jersey

A: The answers to your questions depend on multiple factors.

Is the other S-Corp at all related to the litigation? How do you know if the owner is the 100% owner?

Was the motion to vacate granted?

The other S-Corp should be named in the litigation if there are grounds to do so.

Was the judgment a default judgment?

I recommend that you consult with an attorney.

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