Monday, October 5, 2015

Suing a Dissolved Corporation

The Mississippi Supreme Court decided Williams v. Clark Sand last Thursday located here.  The issue in the case dealt with the time frame for a dissolved corporation to be sued.  The Mississippi Supreme Court found that:

"At common law, when a corporation dissolved, it no longer existed, and it could not be sued. But because of the harshness of this rule, Florida, like most states, has adopted a corporate-survival statute that allows plaintiffs to bring suit against a Florida corporation for up to four years after dissolution. This rule applies to claims that were unknown to the corporation at the time of dissolution. Here, sixteen plaintiffs sued Clark Sand Company, Inc., a Florida corporation, more than four years after the corporation’s dissolution. The circuit court judge therefore sustained Clark Sand’s motion for summary judgment. Finding no error, we affirm."

The case also cites to the relevant Mississippi statute on this area.  This is a good case to file away which can come in handy where there are companies that are administratively dissolved by the state for failure to pay annual fees. 

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