I was tempted to ask for them to refile but like you said I didn’t want to tick the judge off. He asked me right when I brought it up before the case was heard if I was a principal in the LLC. I didn’t know if it mattered or why he was asking but of course told him the truth yes, I was. He said to the plaintiff “Why did you sue Scott personally when you were doing business with his LLC? Don’t you know people form LLC’s to protect their personal assets in the case of a lawsuit?” It was kinda funny.
Yes, I did form it myself. I used Randy and Charlie’s materials (which I believe are your materials)and formed it about 9 months ago.
I am getting ready to form another LLC put a balance of properties into. (I believe your suggestion is to put approx 5 properties per LLC or 250k equity)
I am also going to need some materials on forming a C Corp. so I can set that up to do the management for the LLC’s. Which of your courses do I need to do that?
I posted a question last week or so about being named personally in a suit for a transaction in my LLC. Well, just to update you and let you know your advice was well taken, everything went fine and I won.
My outcome was almost exactly that of JohnBoy’s. I came prepared with paperwork, etc. and I told the judge about the incorrect filing against me, not the LLC. The judge asked the Plaintiff why he did that. It was funny the guy had no answer. The judge asked me if I was OK with changing the name on the suit to the LLC and continuing, and I told him that was fine, I was prepared to continue.
Long story short my paperwork and story were solid ( and true) and the other guys was weak. The judge apologized to him and said “you have not shown sufficient evidence to support your case” Done.
Just a quick note of thanks to those that responded. I went in prepared and confident and get to keep a no-good from taking money out of my pocket!! Thanks!
I think you made the right move by going along with the Judge to allow him to just make the change. The outcome could have been different if it annoyed the Judge by making them refile. Besides, the out come was good for you in the end anyway! Good going! And thanks for following up to let us know how it turned out.
Scott, by the way, when the Judge asked whether your LLC could be substituted in place of you, the answer could have been “no.” In this case, the plaintiff would have to refile the case, naming and serving process on your LLC. However, judges sometimes get annoyed when you do that and hold it against you (if, in fact, they even remember your face when you appear in court again a month later).
Nice job, counselor!
PS - this story would be even better if you told me that you formed the LLC yourself - did you?
It must have been very pleasurable to see the this guy totally get the wind taken out of his sails right there, in public, by the judge that he thought for sure would jump at the chance to intimidate you and vindicate him. The best kind of victory.