B LAW FINAL
To: Bookstore
From: Navneet Karra
Date: 12/14/14
Subject: Greg vs. LLC
1) What parties Greg sued? Greg could’ve sued many parties in this situation. First, Greg could go after the Limited Liability Corporation members for when Mike yelled at Greg after he criticized the Hunter Thompson Novels, a form of assault. In LLCs, the profits and losses are “passed through” the business to each member of the LLC. Secondly, Greg could go after Strip Mall 4 for damages resulting from the assault from Mike. Greg could also personally sue Mike for the tort he committed.
2) Shawn, Bryan, and Mike’s liability to: each other, Suppliers, Razorback, Tiger, Greg, and Strip Mall 4. The LLC members, Shawn, Bryan, and Mike, are put in a very tight spot with this lawsuit. The LLC members have a fiduciary duty which basically means that all members must have a duty of loyalty and due care to the LLC. However, Mike went out of his way to break this duty by threatening to assault a customer. This allowed the LLC to get sued causing a joint liability to form as part of the business formation. If parties have joint liability, then they are each liable up to the full amount of the relevant obligation. Therefore, the results of Mike’s actions cause problems for all of the members. However, Mike committed an intentional tort through the assault, which brings the limelight on him. Assault is an action that causes the victim to fear an imminent battery. This is exactly what Mike spurred when he raised his voice and threated to punch Greg. In most cases, the members of a LLC divide losses according to a formula. But since Mike made the assault, the others members have the opportunity to hold him accountable for the losses. They go about this by handing over the individual amounts they are liable for from when the LLC initially started. They are liable up to the amount of their contributions or, if they have not fully paid their contributions into the LLC, for any deficit. This is typically
From: Navneet Karra
Date: 12/14/14
Subject: Greg vs. LLC
1) What parties Greg sued? Greg could’ve sued many parties in this situation. First, Greg could go after the Limited Liability Corporation members for when Mike yelled at Greg after he criticized the Hunter Thompson Novels, a form of assault. In LLCs, the profits and losses are “passed through” the business to each member of the LLC. Secondly, Greg could go after Strip Mall 4 for damages resulting from the assault from Mike. Greg could also personally sue Mike for the tort he committed.
2) Shawn, Bryan, and Mike’s liability to: each other, Suppliers, Razorback, Tiger, Greg, and Strip Mall 4. The LLC members, Shawn, Bryan, and Mike, are put in a very tight spot with this lawsuit. The LLC members have a fiduciary duty which basically means that all members must have a duty of loyalty and due care to the LLC. However, Mike went out of his way to break this duty by threatening to assault a customer. This allowed the LLC to get sued causing a joint liability to form as part of the business formation. If parties have joint liability, then they are each liable up to the full amount of the relevant obligation. Therefore, the results of Mike’s actions cause problems for all of the members. However, Mike committed an intentional tort through the assault, which brings the limelight on him. Assault is an action that causes the victim to fear an imminent battery. This is exactly what Mike spurred when he raised his voice and threated to punch Greg. In most cases, the members of a LLC divide losses according to a formula. But since Mike made the assault, the others members have the opportunity to hold him accountable for the losses. They go about this by handing over the individual amounts they are liable for from when the LLC initially started. They are liable up to the amount of their contributions or, if they have not fully paid their contributions into the LLC, for any deficit. This is typically