Q: Is the employer responsible for employee's damages for his rental unit leased under company name without permission?
Our employee rented an apartment under our our company name without our authorization. Then he moved out prior to lease expiration date and months after he was terminated by our company. Also, our company is an S Corp and we were never served by proper service of process and they levied money out of our bank account.
A:
1. If a former employee falsified a lease without permission from the owners of the corporation the corporation may have a viable cause of action--if the unauthorized act caused actual damage to the corporation.
2. If your S corporation's bank accounts have been levied it must have been the result of a lawsuit against the S corporation; and if that is true then the corporation--not you--must have been served with the summons and complaint.
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