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Can I sue a creditor who placed a judgement against me because I signed a corporate contract?

Long Island City, NY |

I was authorized by my employer to sign a corporate contract with a company on his behalf while he was away. There was no personal guarantee asked or signed for. My employer went out of business and never payed that particular debt. A default judgement was placed against the company but also against me personally. They served papers at an address I had moved from years before so I was unaware of any court date. I learned of the judgement 4 years after it was placed at which time I got a lawyer, went to court and had the judgement vacated with prejudice because first I was not properly served with papers and second because it was a contract between 2 corporations. The judge stated that as an employee I have no liability in that particular debt. My credit was and is clean otherwise

Attorney Answers 4

Posted

You can sue, but from the sounds of it would have a very hard time proving damages. You might be able to do so, if you can show that you were denied a loan because the the judgment or because they seized some of your assets prior to the judgment being vacated.

If you'd like to discuss, please feel free to call. Jeff Gold Gold, Benes, LLP 1854 Bellmore Ave Bellmore, NY 11710 Telephone -516.512.6333 Email - Jgold@goldbenes.com

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Posted

You would have had a better chance by seeking costs when you moved to vacate the default judgment.

I am a former federal and State prosecutor and now handle criminal defense and personal injury/civil rights cases. Feel free to check out my web site and contact me at (212) 577-9797 or via email at Eric@RothsteinLawNY.com. I was named to the Super Lawyers list as one of the top attorneys in New York for 2012. No more than 5 percent of the lawyers in the state are selected by Super Lawyers. The above answer is for informational purposes only and not meant as legal advice.

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Posted

Sue them for what? If for attorney fees, you are unlikely to get them at this point, and most likely, would not be able to get them at any point absent a contract or sanctions for a frivolous lawsuit.

If you credit is fine, what are your damages? If it is the negative credit reporting you are worried about, send the order vacating the judgment to the reporting agencies. If they do not remove the derogatory entries, you have options under the fair credit reporting act.

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Posted

No you cannot sue the creditor unless you can prove damages. If you cannot prove that you were actually damaged in someway like being denied a mortgage or something else, then you do not have any recourse to sue.

DISCLAIMER: This answer is for informational purposes only under the AVVO system, its terms and conditions. It is not intended as specific legal advice regarding your question. The answer could be different if all the facts were known. This answer does not establish an attorney client relationship. I am only admitted in New York and New Jersey. Visit my site for more information: www.lawcrt.com.

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