Puleo v. Topel

856 N.E.2d 1152 (2006)

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Puleo v. Topel

Illinois Appellate Court
856 N.E.2d 1152 (2006)

  • Written by Rose VanHofwegen, JD

Facts

Michael Topel (defendant) was sole manager and owner of limited-liability company (LLC) Thinktank, LLC (defendant), a web-design and marketing business. The Illinois secretary of state dissolved Thinktank because it failed to file an annual report as required by Illinois law. Topel arguably knew or should have known about the dissolution but continued conducting business for three months before announcing the company was ceasing operations. Topel informed all Thinktank employees and independent contractors their services were no longer needed, but Thinktank failed to pay independent contractors for work performed. Philip Puleo and eight other independent contractors (plaintiffs) sued Topel personally in addition to Thinktank to recover the amounts owed. The trial court found Topel could not be personally liable for obligations incurred on behalf of Thinktank after it was dissolved, entered judgment on the pleadings against only Thinktank, and dismissed all claims against Topel with prejudice. The independent contractors appealed, arguing Topel should be personally liable for debts incurred after Thinktank’s dissolution.

Rule of Law

Issue

Holding and Reasoning (Quinn, J.)

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