[RPPTL LandTen] Sold the property, but the defense suit remains

[Jeffrey Mazor]

A former warehouse tenant filed suit against the warehouse owner, my Florida
LLC client, claiming that after a hurricane had damaged the roof and other
structural elements, my client failed to adequately repair and maintain,
resulting in all sorts of damage. It's a bogus claim, but will still cost my
client money to defend. 

 

The thing is, my client sold the property long ago, it was the only asset
and almost all the net proceeds have been distributed. There's a little
money left, and this lawsuit is the only reason that  the principals have
not dissolved the LLC.

 

1.        Does it make more sense to (a) fight, (b) settle or (c) just
dissolve the LLC and  let the Plaintiff take a potentially large default
judgment?

 

2.        If we just dissolve and distribute the remaining assets to the
stakeholders, and just allow a default and substantial judgment to be
entered, how much exposure would there be for the distributes?

 

Jeffrey R. Mazor, Esq.

J. R. Mazor & Associates, P.A.

Presidential Circle Building 

4000 Hollywood Blvd.,  Suite 265-s

Hollywood, FL 33021

Phone: 954-962-3500

Fax:       954-962-3560

Email:   Jmazor at Mazor.com

 

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