What, Me Worry? Tort Liability Risks for Participants in LLCs
U.C. Davis Businesss Law Journal, Vol. 11, pp. 267-324
51 Pages Posted: 15 Aug 2010 Last revised: 26 Oct 2011
Date Written: August 13, 2010
State legislatures gave scant consideration to tort victims’ rights when authorizing the LLC as a new business option. Nonetheless, resulting LLC laws left untouched agency law principles that preserve personal tort liability claims against individual LLC participants. This Article explains why this residual tort liability path, and related defensive doctrines, offer the best hope for a principled accommodation of expanded limited liability business options and the interests of third party tort victims.
Keywords: agency, limited liability companies, torts
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