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Question

Asked 364 days ago by a user from Califon, NJ

Company suing me personally through my employer

I signed a credit application for my company for trucking services. The trucking services fee is more than quoted so my employer is holding off paying them until the difference is substantiated. The trucking company is threatening me personally because it was my signature that guaranteed payment.

Is this legal or is the employer responsible?

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Answers

Answer 1 of 3 - Answered 364 days ago

Michael Duffy - Lawyer from Philadelphia, PA

Hi there,

You can only be held liable if the contract specifically stated that you personally guaranteed the contract, which would be unheard of for a standard trucking contract signed off on by an employee. The trucking company might be engaging in some nasty, unethical business practices. You should have the contract reviewed by an attorney and your employer should indemnify you for any potential liability.

Our firm offers a free consultation.

Regards,

Michael J. Duffy
Duffy Law, LLC

1-888-414-5773
www.mduffylaw.com

mduffy@mduffylaw.com

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Answer 2 of 3 - Answered 363 days ago

Frank A. Natoli Esq. - Lawyer from New York, NY

That is a very interesting scenario. Vendors will routinely secure their service agreements with personal guarantees so they have some recourse.

As an employee (non owner) you really should not have been the person who signed the agreement in closely held company situation. If your employer knew however that you were signing this as part of your duties they will likely be "estopped" from claiming you had no authority. The arguments can get rather chewy in a case like this.

I agree that you would be best served with having the agreement reviewed if you do not think your employer will cover you on this.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Kind regards,
Frank
www.LanternLegal.com
866-871-8655
frank@lanternlegal.com

**We are proud to announce that Lantern Legal was awarded the prestigious 2012 Louis M. Brown Award for Legal Access (Meritorious Recognition) given by the American Bar Association's Standing Committee on the Delivery of Legal Services: http://www.lanternlegal.com/mediaroom.php

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Answer 3 of 3 - Answered 363 days ago

Thanks very much!

Abuse

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