What was the courts decision?
Posted by: Wendy - Friday, January 3, 2014 9:58 AM
Something is missing . . . what "negligence" was alleged by the owner? Did the LLC also use/utilize other employees on the project? Usually, if an LLC member is on-site working, he is also serving as the Responsible Managing Owner/Employee of the LLC, i.e., he is supervising other employees, subcontractors, et al. If he/she is the sole worker on-site, then the negligence must be in the nature of "conscious disregard" for proper construction practices, and even then it must be almost hidden from inspection or impartial observer's sight to warrant "piercing the veil" if the LLC has been otherwise properly organized, managed and controlled. BUT, again, the case is/was in Louisiana.
Posted by: Jeff - Friday, January 3, 2014 10:11 AM
I've seen recent examples of owners and/orGCs who require personal acceptance of liability for LLCs members which obviously eliminates any veil of protection.
Posted by: Don Godi - Friday, January 3, 2014 11:33 AM
The Louisiana Supreme Court ruled that the sole member of the LLC could not be held personally liable for defective work he performed which was within the scope of the contract entered into by the LLC. The alleged negligence was the lack of due care in performing the work.
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