How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Law Pro Your Own Question

Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24360
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
11688690
Type Your Business Law Question Here...
Law Pro is online now
A new question is answered every 9 seconds

I have an LLC in Texas with 5 other investors, I am being sued

Resolved Question:

I have an LLC in Texas with 5 other investors, I am being sued personally for $1800.00 that another partner in the business did not pay and she was not authorized by our corporation to do business on a credit basis. We do not have any kind of agreement signed with the creditor. My question is what case in the state of Texas exempts an individual from being sued. I know that an LLC can but not an individual. I need to reply to this suit with the case supporting my response.
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Pro replied 1 year ago.
Hi! My name is XXXXX XXXXX I'll be the attorney assisting you.

I'm not sure what the basis of the suit is and why they are going after you personally.

Can you describe in more detail about this LLC partner and what they bought and charged?
Customer: replied 1 year ago.


My business is(used to be) a tire recycling facility. We used a local tire recycling facility to throw away tires in his tire reclamation landfill site. He charges us by the lbs.

Expert:  Law Pro replied 1 year ago.
This was all done through your LLC - correct?

What was it that this LLC partner bought or paid for and for what?
Customer: replied 1 year ago.


My partner took a 53' trailer full of tires to the landfill. Supposedly, the landfill gave her credit. I was not made aware and she was not authorized to do business as such. We had taken trailers full of tires before but we always paid before we could leave the creditors premises.

Expert:  Law Pro replied 1 year ago.
OK, but if your partner did so - they did so under the pretense of your LLC - correct?
Customer: replied 1 year ago.


I would think so. I was not there when the transaction happened. My partner was told and she affirmed that she was going to pay for the trailer full of tires before she took the tires to the facility to get disposed off.

Expert:  Law Pro replied 1 year ago.
It would appear that she performed her actions under the guise of the LLC - as such there is no personal liability for you.

Yes, the LLC could be liable. That the LLC partner has the apparent authority to act on behalf of the LLC.

However, at most the LLC is liable - not you personally.

Is that the case here - that the LLC partner dumped the tires under the apparent authority or business of the LLC?

If that's the case then I think it's a simple answer.
Customer: replied 1 year ago.


Yes sir, I know that the answer is that the LLC is liable but I am looking for a case in the state of texas that specifically exempts me. I need to respond to the law suit with a specific case to the judge.

Expert:  Law Pro replied 1 year ago.
What are they alleging in the complaint why you personally are liable?

Are they suing all the owner LLC owners or just you?
Customer: replied 1 year ago.


They are suing 3 more of the owners. Why? don't know. Maybe its because one resides in Mexico and the other resides in Canada.

Expert:  Law Pro replied 1 year ago.
OK, I'll find the case/statute for you.

It's ridiculous that the judge is requesting that - it's common knowledge.

I may be a little bit getting that for you.

Customer: replied 1 year ago.


I understand. Just trying to protect myself. You can email the response. I am going to step out for a little while. This will give you time to research it. Thank you.

Expert:  Law Pro replied 1 year ago.
Ok. Sounds good.
Customer: replied 1 year ago.


I got a window that says that you responded but it took me to a blank window. Don't know if you have had a chance to find the statue.

Expert:  Law Pro replied 1 year ago.
Here it is - it's almost stupid that they filed suit against you:

In addition to expressly providing for limited liability of LLC members, the BOC states that a member of an LLC is not a proper party to proceedings by or against an LLC except where the object is to enforce a member’s right against or liability to the LLC. Tex. Bus. Orgs. Code § 101.113. LLC members or managers are liable for their own fraudulent or tortious acts even if the acts are committed in the service of the LLC. In re Williams, 2011 WL 240466 (Bankr. W.D. Tex. Jan. 24, 2011); Sanchez v. Mulvaney, 274 S.W.3d 708, 712 (Tex.App.–San Antonio 2008, no pet.); LJ Charter, L.L.C. v. Air America Jet Charter, Inc., 2009 WL(NNN) NNN-NNNN(Tex.App.–Houston [14th Dist.] Dec. 15, 2009, pet. denied).
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24360
Experience: 20 years experience in business law - sole proprietor, partnership, and corporations
Law Pro and other Business Law Specialists are ready to help you
Expert:  Law Pro replied 1 year ago.
Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer.. I thank you in advance for taking the time to provide me a positive rating!

If you have any questions, about this or anything else, please ask for me, Law Pro, directly in the question and I will try to assist you as best I can.

For example, you would state, "This question is for Law Pro . . . (then on with your question).

I wish you the best in the future.
Customer: replied 1 year ago.

I was in a class action law suit against Fastenal. THe firm handling my law suit was Scott Cole from California. The settlement was very small therefore I am not satisfied with the result. I was fired in April of 2011, has my statues of limitation expired eventhough this case took most of my time and the result was ridiculous. Do I have to accept the paltry settlement or can I continue the legal course.

Expert:  Law Pro replied 1 year ago.

What does that have to do with being sued individually for an LLC liability?

 

That's a separate and distinctly different issue from your original question.

 

You haven't rated my previous answer where I gave you the case law and statutes on the issue.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA
 
 
 

Related Business Law Questions