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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>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.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>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.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Rod Harmon<br><b>Sent:</b> Tuesday, November 07, 2017 9:38 AM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Execution on judgement<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#1F497D'>My answer to your question is yes. See following article:<o:p></o:p></span></p><h2 style='margin:0in;margin-bottom:.0001pt'><span style='font-size:12.0pt;font-weight:normal'>Beresford Booth Obtains a Full and Voluntary Payment of Over $530,000 Owing to Union Employees<o:p></o:p></span></h2><p class=MsoNormal>May 5, 2011 <span style='font-size:12.0pt'><o:p></o:p></span></p><p class=MsoNormal> 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.<o:p></o:p></p><p class=MsoNormal> 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.<o:p></o:p></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Rod Harmon</span><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D'> </span></b><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D'>RODNEY T. HARMON</span></b><o:p></o:p></p><p class=MsoNormal><b><span style='font-family:"Arial",sans-serif;color:#1F497D'> Attorney at Law</span></b><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> P.O. Box 1066</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> Bothell, WA 98041</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> Tel: (425) 402-7800</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> Fax: (425) 458-9096</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> <a href="http://www.rodharmon.com">www.rodharmon.com</a></span><o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'> <a href="mailto:rodharmon@msn.com">rodharmon@msn.com</a></span><o:p></o:p></p><p class=MsoNormal style='margin-top:6.0pt'><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Craig Gourley<br><b>Sent:</b> Monday, November 6, 2017 3:41 PM<br><b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br><b>Subject:</b> [WSBARP] Execution on judgement<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Listmates, <o:p></o:p></p><p class=MsoNormal>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. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:14.0pt'>Gourley Law Group<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:12.0pt'>Snohomish Escrow<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:12.0pt'>The Exchange Connection<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:14.0pt'><o:p> </o:p></span></b></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold",sans-serif'>1002 10<sup>th</sup> Street / PO Box 1091<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold",sans-serif'>Snohomish, WA 98291<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold",sans-serif'>360.568.5065<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold",sans-serif'>360.568.8092 fax<o:p></o:p></span></p><p class=MsoNormal><u><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold",sans-serif;color:#0563C1'><a href="mailto:Craig@glgmail.com">Craig@glgmail.com</a></span></u><span style='font-size:10.0pt;font-family:"Arial Rounded MT Bold",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>