I was discussing with a friend of mine that is suing there Remodeling Contractor (an LLC) for over $200K. He was saying they will probably win, but the Contractor (an LLC) will most likely just shut down / dissolve their LLC and then turn right around and start a new Contractor Company (LLC)?
First of all, "they," "them" and "their" are not all-purpose pronouns (and "there" isn't a pronoun at all), and when you use them to refer to everyone, it can become confusing. Second, despite your use of a question mark, the second sentence of this quote is not a question. If you intended a question, I cannot discern what you intended to ask.
I told him that there has to be some law to stop something like this from happening...are there any laws?
Why would you tell him something that you don't know to be true (and which, in fact, is not true)?
The owner(s) of the LLC defendant could, indeed, close down and stop operating the business and might even dissolve the LLC (filing BK isn't nearly as likely as simply walking away from the business). There would be nothing to prevent those persons from starting a new business, and I've seen it many times with contractors. However, if Colorado requires contractors to be bonded, your friend ought to contact the bonding company. The bond won't likely to be sufficient to cover a $200k+ judgment, but if the bonding company pays a claim and doesn't get reimbursed, that will probably impact the owner(s)' ability to get a new bond. Additionally, if the dissolution isn't done properly, it's possible that your friend could sue the new company or the owner(s) on a successor liability or alter ego theory. Of course, that will add a bunch of additional legal fees.
