Question

LLC Liability

Plaintiffs Karl and Ginny Drake were injured by lead paint while living in a house owned by Riverwood Homes, LLC. The plaintiffs sued Bill Ding, a member of the LLC at the time it owned the property, alleging that he was liable for their injuries. Ding had limited involvement with the property. He has never visited the property, and neither he nor the LLC was aware that the plaintiffs were occupying the property until after the LLC acquired it. Once they realized this fact, they took legal action to have the plaintiffs removed. The applicable housing code imposes liability on any individual who "owns, holds, or controls" the title to the property.

Is Ding liable for the plaintiffs' injuries?

What are the policy arguments in favor of both parties?

Answer 1

LLC - Limited Liability Company, it offers protection from personal liabiilty for business debts,just like corporation. The profits and losses of the business pass through the owners,who report them on their tax returns.It is less complex and less paperwork needed to register this.

LLC owner liables for

• personally or directly injures someone
• fails to deposit taxes
• intentionally done something wrong

Ding is not liable for the Plaintiffs Karl and Ginny Drake injuries, because he is not directly involved in it.

Policy arguements of Ding

• As per the act, Ding is not personally liable and involved for the loss of Plaintiffs'.
• Emphazize record keeping, Ding doesn't have the record of Plaintiff and Ginny stayed over there

Arguments of Plaintiff

• By paying taxes, he can sue Ding for the loss incured
• As owners are responsible for the loss, he may charge Ding