Posted by Steve on 9/27/05

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I was a small business owner (restaurant). The business
was sold over a year ago. Our workmens comp insurer is
suing our corporation claiming we under reported payroll.
They claim all cash payments were payroll. We didn't keep
great records but we did have a payroll company do our
payroll. The company is being sued for $11K. One attorney
advised us to offer a minimal amount to settle or let them
get a judgment against the corporation. Unfortunately he
was unable to advise us of the law as it pertains to us
being personally sued and if they can pierce the corporate
veil to get to us. The case is ridiculous as there were no
claims against the insurer and they lost no money to begin
with. I would like to know what the best course of action
would be and if there is anything we need to worry about
out of the ordinary when it comes to insurance and
workmens comp.

Small business dispute with workmens comp insurer, 9/27/05, by Steve.

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