I am a member of an LLC that s being sued. We have no funds to retain an attorney, what to do?

Litigation 5 views 3 answers
I am a member of an LLC that s being sued in civil court. We have no funds to retain an attorney, and no options to raise any funds. We understand that an LLC cannot represent itself. What obligations and/or options does the LLC have if we cannot respond to the case without an attorney?

Attorney Answers

3
Andrew Kevin JacobsonBusiness AttorneyOakland, CA ·
If the LLC does not respond, the plaintiff will take its default, meaning that the LLC cannot participate in the case any further. Eventually the plaintiff will seek a judgment against the LLC. Even if you cannot afford a lawyer, you need to talk with one. There are a lot of lawyers who will give a free half-hour consultation. You need to understand the impact of not doing anything, and what options there might be.
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Frank Natoli ·
I agree with my colleague, most of us here, including myself, offer a free phone consult. If the LLC is flatly broke and the members are not shouldering any of this liability then you really do not have much to worry about. Remember, the whole point of setting up a limited liability entity is for exactly this reason; so you are not personally liable. Best regards, Frank Natoli-Lapin, LLC (see Disclaimer) Best regards, Frank Natoli-Lapin, LLC (see Disclaimer)
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Sarkis Babachanian ·
I agree with my colleagues Jacobson and Natoli. I would add that in some cases even an LLC can have it's "veil pierced" and thus leave one or more members personally responsible for the debt that will arise from the default judgment. In any case consult with a lawyer without delay; shouldn't cost the LLC more than a couple of hundred bucks to meaningfully consult with counsel about alternative ways to approach the problem.
0 upvotes

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