Can a parent company be sued for the independent actions of its subsidiary company and vice-versa?

Asked about 1 year ago - Los Angeles, CA

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In this case, both parent and subsidiary companies are LLCs. Your thoughts are greatly appreciated.

Attorney answers (3)

  1. Pro

    Contributor Level 12

    6

    Lawyers agree

    Answered March 23, 2012 13:23. Can they be sued - yes. Are there defenses available - depends upon the facts and nature of the relationship between the companies and the plaintiff.

  2. Contributor Level 20

    5

    Lawyers agree

    Answered March 23, 2012 12:00. Yes, certainly. You would need to discuss the specific facts of the claim and the relationship between the parent and the subsidiary with an attorney, but typically both entities would be sued in the same lawsuit.

    Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in... more
  3. Contributor Level 9

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    Lawyer agrees

    Best Answer
    chosen by asker

    Answered March 23, 2012 20:02. It depends on whether formalities were followed, whether funds were co-mingled etc.

    There are a lot of factors to look at and defense that can be argued.

    Best,
    Taleed El-Sabawi
    5703 Oberlin Dr.
    Ste. 201
    San Diego, CA 92121
    taleed@kerseysabawi.com
    www.kerseysabawi.com

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