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

[Jeffrey Mazor]

Arthur:

 

Thank you for the input. That certainly gives me a sense of direction on
this.

 

Jeff

 

From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Arthur J. Menor
Sent: Tuesday, March 15, 2011 8:08 PM
To: 'RPPTL Landlord Tenant Committee'
Subject: Re: [RPPTL LandTen] Sold the property, but the defense suit remains

 

Jeff, as a general rule the manager or managing member of an LLC has a duty
to provide for payment of all known claims at the time of dissolution of the
LLC and distribution of its assets.  A creditor can go after the members of
the LLC for amounts distributed to them at a time when there were known
claims against the company.

 


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Arthur J. Menor 
Partner  

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7-a6912a6d5435/Arthur_J_Menor.cfm/> Biography |
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Website

 

 

 


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From: landten-bounces at lists.flabarrpptl.org
[mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Jeffrey Mazor
Sent: Monday, March 14, 2011 6:36 PM
To: 'RPPTL Landlord Tenant Committee'
Subject: [RPPTL LandTen] Sold the property, but the defense suit remains

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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