Dissolve LLC to avoid paying judgement

[zddoodah]

Your friend should consider suing the individual as well as the LLC.

That's a much more accurate statement.

Because an attorney who doesn't attempt to pierce the corporate veil is doing his (or her) client a disservice.

Let me get this straight: You think that every lawsuit against a corporation or an LLC should include an alter ego claim. Is that what you're saying?

 

[Zigner]

Let me get this straight: You think that every lawsuit against a corporation or an LLC should include an alter ego claim. Is that what you're saying?

That is not at all what I was saying or even attempting to imply, but I can understand your mistaken inference. It may have been more clear for me to say that the attorney should explore piercing the corporate veil in the case. This exploration may end with a decision that it's not a good path to go down. That is what my use of of the word "attempt" meant.

 

[zddoodah]

It may have been more clear for me to say that the attorney should explore piercing the corporate veil in the case. This exploration may end with a decision that it's not a good path to go down. That is what my use of of the word "attempt" meant.

That's an entirely different thing than what you previously wrote. The lawsuit has already been filed, so an alter ego claim either is or isn't part of the lawsuit. If it's not and the friend gets a judgment against the LLC, there may be a procedure under Colorado law to amend the owner(s) of the LLC on an alter ego theory, but we have no way of knowing what is or isn't likely to happen.

 

[Zigner]

If it's not part of the lawsuit, that means the attorney already explored it (attempted to do it) but decided it wasn't the right path to take. We're talking semantics at this point, yet saying the same thing.

 

[Litigator22]

What is the name of your state? Colorado

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)?

I told him that there has to be some law to stop something like this from happening...are there any laws?

You were correct in so telling your friend as there are indeed such laws in place!

The dissolution of an LLC no more preserves its assets for the benefit of its membership to the exclusion of the rights of the entity's creditors, than does the death of an individual absolve his or her estate from the claims of his or her creditors.

Said friend needs to be consulting with an informed and seasoned trial lawyer. Time could very well be of the essence.

 

[quincy]

Temporary bump