Legal Question in Construction Law in New York

Re: LLC's and lawsuits

It has no ultimate effect. The assets of the LLC will be exposed to claims against the predecessor. They may try to duck the liabilities but a skilled attorney, backed up if need be by a good forensic accounting firm (KPMG has an excellent reputation in this area) will trace the assets and nail them for it. The real beauty of that exercise is that the debt-ducking deadbeats get tagged for fraud, which puts them out of business to a great extent (can't get bonded, it's a vendexing event, and it can even be a diversion of lien law trust funds, which has been known to send people to jail).