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Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 6845
Experience:  30+ yrs. representing small business, real estate, probate
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LLC, is sued which I am a member of. They also named me and

Customer Question

LLC, is sued which I am a member of. They also named me and the other member in the law suit among other defendants and their corporations (two more defendants and their two corporations.) My LLC has bank accounts since fits say in business, plus business
credit card, payroll, employees (2 or 3 at a given time) required insurance, accountant form, separate email domains, websites and regular meetings and reviews. Upon formation of LLC, articles outlined initial investments from both members. Which exact legal
steps that should be taken to oppose to us being personally named? A motion to dismiss has been already filed, in that motion we didn't attack this part. Other party answered to motion and now it's our final answer to their answer. Other side will not be allowed
any more answers. Please advise in details. We are pro se at this point as well after major blackmailing and malpractice from previous lawyer.
Submitted: 1 year ago.
Category: Business Law
Expert:  Irwin Law replied 1 year ago.
Are there allegations in the complaint that would support "piercing the corporate veil" against your LLC? Why have you decided to proceed without a new attorney?
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
Sorry, the live phone call request was by mistake.
Customer: replied 1 year ago.
I don't know what supports piercing the corporate wall, but here is the situation:They allege that the LLC and US advertized and offered furnished apartments for short term rental in NYC in violations of the ban on such rental for class A apartments in NYC cam into effect in 2011.
Because of the above allegation, they also allege that we violated consumer laws protection by advertising something that is not allowed in NYC. These are the core of their allegations.Reality is: The code they reference (MDL - multiple dwelling law) does not completely ban such rental. In fact it clearly states that "boarders" are allowed if a host (a permanent resident or a permanent family resident in the same unit.) We indeed had a host (a permanent residence in the same space with sort term rentals AND the website clearly advertized short AND long term rental in the same spaces. Also, the website clearly mentions that the prospective short term renter will share the space with a host and fellow long term residents.There is even another case where these inspectors went to another location, managed to enter (usually through illegal means,) and issued the same exact building violations they issued to us (before they decided to sue us,) but never bothered to go back and left this particular business alone unharmed for 3 years now and it still conducts business (even this location had one extra violation issued to them compared to us.)The final point is that 1 year before they decided to sue us, our company, the owners of the building and their LLC as well, It was me (one of the members in our LLC) who decided to sue them for: assault, battery, illegal entry, illegal search and seizure and selective service. There is a suspicion that they are retaliating for that reason.About not getting another lawyer to represent us: Our prior attorney demanded a very large sum as a retainer, he prepared motion to dismiss (which apparently was way too long,) and after finally submitting it, it was deemed faulty because of it's length. He refused to shorten it before we give him even so much more money (basically, blackmailing us.) He refused to provide any billing as well. He threatened to "reveal" certain information about us to the other side and court if we don't pay him. We decided to allow him off the case but he still revealed information about us before was granted to withdraw. t this point, we didn't have the means or the time to seek another lawyer, though those we considered mentioned the time issue (it was couple of weeks before the corrected motion was due to be refiled) and the fact that they will also require yet another retainer to take on the case as well.This is the issue in a nutshell.
Expert:  Irwin Law replied 1 year ago.
This is far too complicated to deal with in a Q & A format like this. Even with your lengthy fact statement, I have no idea what is going on. We would be back and forth answering questions all day, I'm afraid. But regarding the attorney conduct, I suggest I can say that it appears that the attorney committed serious ethical violations. You may wish to report that to the appropriate NY Lawyer disciplinary committee. See: https://www.nycourts.gov/courts/ad2/attorneymatters_ComplaintAboutaLawyer.shtml
Also, regarding the "corporate veil" issue, you should read: http://www.nolo.com/legal-encyclopedia/personal-liability-piercing-corporate-veil-33006.html. While I wish you the best of luck, can say that your chance of winning a case like this without an attorney is pretty slim.
I hope you will give this answer a positive rating.

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