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Suing an LLC in NC

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Kynwood

Junior Member
What is the name of your state (only U.S. law)? North Carolina: I had a signed contract to purchase property owned by an LLC. The contract listed the name of the LLC...like ABC, LLC. They were unable to deliver a clear title by closing, so I collected my earnest monies and am now pursuing recovery of the expenses I incurred in the purchase process (survey, attorney, inspection, etc.). We went to court but it was dismissed because I listed individuals and not the LLC as the defendants. One of the members signed the contract on behalf of the LLC. I will refile using the LLC as the primary defendant, but should I list either the registered agent or the member who signed as a secondary defendant?What is the name of your state (only U.S. law)?
 


latigo

Senior Member
Except for the obvious fact that you are out of your element here, I don’t understand what is puzzling you about the grounds upon which your lawsuit was dismissed and its legal significance.

Isn’t it now clear to you that the court dismissed your complaint because it failed to state a viable cause of action against individual members of the contracting LLC?

And weren’t you made to know that the legal basis for that order of dismissal was North Carolina’s Limited Liability Company Act?

Apparently the legal meaning and consequences of the court’s order has not sunken in. Otherwise why would you still be contemplating filing an amended complaint to include an individual member as a party defendant?
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If you are going to attempt to prosecute a civil lawsuit over the aborted real estate contract - and I fail to find anything in your post serving as a legal basis to recover your incidental expenses -

Then you’d better acquaint yourself with applicable North Carolina law. Because right now you are totally at sea!
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Under the N. C. LLC Act individual members are NOT liable to third parties simply by reason of their membership standing.

Nor do they become liable solely by participating in the management and control of the company – including the act of “signing a contract on behalf of the LLC”! (NCGS Section 57C-3-30(a)(b)

Nor is a member of a limited liability company a PROPER PARTY to a proceeding by or against a limited liability company, except in actions involving disputes between a member and the company. NCGS Section 57C-3-30(b)

(You notions of naming the “registered agent” of the LLC as a defendant, whether a member or not AND designating defendants as either “primary” or “secondary” are so misguided as to admit of sensible comment.)
 

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