[WSBARP] Execution on judgement

[Robert Pampell]

Thanks for this, which I had not seen.  Was that a reported case?   Note
that the case preceded the enactment of subsection (5) of 25.15.256, which
is supposed to prevent that result.

 

But I think this brings up another aspect of this issue.  There may be other
remedies that a creditor can use to coerce a settlement and/or satisfaction
of the judgment, one of which is receivership, especially where an operating
LLC is involved.

 

I think this discussion also is a great object lesson for the need to
counsel clients proposing to form SMLLCs, in terms of tempering their
expectation that an LLC provides a magical shield against all attacks.  If
the client is married, it may be appropriate in some cases to set up the LLC
as a two member company.  To avoid an argument that, by virtue of our
community property law, it is still a SMLLC, it may be useful to have the
spouses enter into a separate property agreement as to the initial
contributions and the interests themselves.

 

 

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rod Harmon
Sent: Tuesday, November 07, 2017 9:38 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Execution on judgement

 

My answer to your question is yes.  See following article:


Beresford Booth Obtains a Full and Voluntary Payment of Over $530,000 Owing
to Union Employees


May 5, 2011 

  Representing several union pension trust funds against a defaulting
employer, Beresford Booth lawyer William Kessler successfully obtained a
lump-sum payment of over $530,000. Pension payments by the employer
corporation to the union trust funds had been personally guaranteed by the
corporation's principals. One of those principals was the single member of
an LLC owning real property with equity exceeding $1.5 million.

  Primary leverage for the voluntary payment was Beresford Booth obtaining
(a) a Writ of Execution against all right, title and interest in the LLC
owned by the single-member judgment debtor and (b) a post-judgment
injunction precluding transfer of the LLC interest and its real property.
Full payment was received less than 30 days after the sheriff levied on the
LLC interest.

 

 

Rod Harmon

 

RODNEY T. HARMON

       Attorney at Law

         P.O. Box 1066

      Bothell, WA   98041

     Tel:   (425) 402-7800

     Fax:  (425) 458-9096

    www.rodharmon.com <http://www.rodharmon.com> 

   rodharmon at msn.com <mailto:rodharmon at msn.com> 

 

 

 

 

From: wsbarp-bounces at lists.wsbarppt.com
<mailto:wsbarp-bounces at lists.wsbarppt.com>
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Craig Gourley
Sent: Monday, November 6, 2017 3:41 PM
To: wsbarp at lists.wsbarppt.com <mailto:wsbarp at lists.wsbarppt.com> 
Subject: [WSBARP] Execution on judgement

 

Listmates, 

Client has a judgment against him personally and wants to acquire real
property in a single member LLC.  I know the judgment does not attach
directly to the real property.  My recollection is that the creditor can
obtain a charging order against the LLC and any distributions to the member
would go to the judgment creditor.  Can the judgment creditor execute
against the personal property interest of the " membership" thereby taking
ownership of the LLC and the property it contains?   Thanks in advance for
your insight. 

 

Gourley Law Group

Snohomish Escrow

The Exchange Connection

 

1002 10th Street / PO Box 1091

Snohomish, WA 98291

 

360.568.5065

360.568.8092  fax

Craig at glgmail.com <mailto:Craig at glgmail.com> 

 

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