Legal Question in Business Law in Minnesota

"Question: What amount of protection does the LLC status protects me from my Personal assets being seized? Background: My old firm (now closed) and I are personally along with business partner being sued. We own a residential drafting firm (think unlicensed architects) and we did work for a client that they claimed caused to have their work was defective (the hire a firm that specializes in construction law). We were hired to "managed a project" and had a contractor who was licensed (with insurance and a state license as required) contact with the homeowner directly; we were "advisers" to the project. They claimed the work was deficient. We had a contract written from my company that identified they were doing business with the firm a LLC (not us individually)...the contact did not spefically say the the homeowners were doing business with only the LLC...but refered to the LLC in the document...all payments were made to the LLC name and deposited in the LLC account The homeowners tried suing the contactor, but the insurance law firm (read "big mean" lawyers) would not even think of settling, so the homeowners dropped them from the suit They original said in the suit the damages were $150,000 in a new filing the say $50,000


Asked on 12/16/11, 8:16 am

3 Answers from Attorneys
David Anderson Anderson Business Law LLC

You should have an experienced Business Attorney like me review your LLC documents and other contract documents to gauge your exposure.

I am in Eden Prairie but have clients statewide.

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Answered on 12/16/11, 8:41 am

Without knowing more details iyt is hard to determine what protection you have, but if everything was handled properly in the past you should be in good shape. Unfortunately, you are going to have to properly defend yourself in this matter or your personal assets will be in jeopardy. I am a little confused that the contract did not state who the homeowners were doing business with in this case. It probably doesn't matter, however, if your firm drafted the contract. It also seems unusual that the plaintiffs would dismiss the case against the contractor just because its insurance company wouldn't offer a settlement. The insurance company has the money, so you really don't want them out of the case unless, you think you have no chance of winning at all. Your question really rises more questions that cannot be address in this forum. It appears you really need to consult an attorney in this matter. Please feel free to give me a call for a free initial consultation. 612.701.7767.

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Answered on 12/16/11, 9:28 am


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