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michael24014 · Jan 23, 2007, 04:29 PM

Hello,
My company is a limited liability company. I am being sued by a client who refused to meet a payment as laid out in the contract. My attorney placed a lien on the property and they sued me for breach of contract, negligence, negligent infliction of emotional distress, violation of the Connecticut unfair trade practices act, & breach of the covenant of good faith and fair dealing.
It appears that they only decided to sue me after inquiring about my commercial general liability policy finding that one or more of their claims could be covered by my insurance, and knowing full well I don't have anything but my house for them to take.
The two issues that only became issues after they decided to sue me were architectural errors on the drawings that were presented to the clients, along with choices, and options to correct the errors. They made their choices which turned out to be bad choices. Now they are claiming that they relied on my expertise in making their choices, but never allowed the architect, whom was being paid an extra fee just for these types of issues, to have any input, as they had hired her for the design & consulting, not me.
Regardless of the outcome, can they lien my house when my company is an L.L.C.

Mike from Stamford Ct.

excon · Jan 23, 2007, 04:42 PM

Originally Posted by michael24014

can they lien my house when my company is an L.L.C. ?Mike from Stamford Ct.

Hello Mike:

Assuming you dotted all the I's and crossed all the t's in your corporation documents, they can't touch your house. That's why you did the LLC in the first place.

excon

Justice Matters · Jan 23, 2007, 05:14 PM

I am not familiar with Connecticut law but the rules regarding corporations are fairly universal. A claimant cannot "pierce the corporate veil" and hold well-intentioned officers and directors responsible for acts or ommissions involving the corporation unless there has been either a crimminal act or a tortious act.

Fr_Chuck · Jan 23, 2007, 06:24 PM

A limited libility company normally protects your personal interest. But not all LLCs are set up correctly and not all are 100 percent protective. That is why of course I will hope and assume you had an attorney set up your LLC. Also this is why you will have to hire an attorney and fight it out in court. But they don't want a lien on your house anyway, they can't do anything with that, they want $$$$, cash upfront.

And of course it is common in today's society, if you sue them ( put lien) they sue you back, they want you to drop your lien and are trying to scare you into it.

landlord advocate · Feb 10, 2007, 06:59 AM

No they can not lien your house. Have you talked to your insurance carrier? This is why you carry the insurance. We've had a similar experience and the insurance company was a tremendous help - slow, but helpful in the end. Think about talking to them. You don't have to file a claim to talk to their law department. Contact your agent for a referral.