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  1. #1
    Join Date
    Feb 2009
    Posts
    2

    Default Liability of Legal Fees Incurred by an LLC

    My question involves business law in the state of: PA

    My brother "worked" for a short time (approx 6 months) for his father in law who had/has an LLC with two other partners, right when he began to work with him, the three partners became embroiled in a legal suit. My brother was only paid for a short time for his work with the LLC, but continued to do assorted, small jobs for the company without being paid, hoping that things would turn around- when it became apparent with the continued deterioration between the three partners that it wasn't getting better he ended his work relationship with them and moved on.
    Now years later- he is being brought into a lawsuit with them and is being held responsible, almost as a fourth member of the llc (despite not being paid, and not being a managing member of the llc or someone who could profit from the llc). The partners are being requested to pay the opposing attorney fees and they want him to pay a 1/4 of the fees and because he is named on the suit, I guess legally he is liable??? My question is, is he really liable for fees incurred by a LLC that he was not a legal member of?
    The other part of the question is that, he is willing to pay his 1/4 (which I feel he should not be responsible for), but other members of the group will not pay at all and the opposing council will not accept a partial payment. What recourse does he have?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Liability of Legal Fees Incurred by an LLC

    Unfortunately there is no way to answer that without knowing about the lawsuit, the court's judgment, and any other relevant court orders issued to date. I assume he was represented by a lawyer in this litigation, so he should discuss his position with his lawyer.

  3. #3
    Join Date
    Feb 2009
    Posts
    2

    Default Re: Liability of Legal Fees Incurred by an LLC

    Thanks for responding. Yes, he has talked to his lawyer and I guess he is somewhat responsible for paying the fee. His lawyer talked to the opposing attorney, to whom the fees are owed, to see if he would take the payment from my brother that he would owe (this payment would not cover the entire amount as there are three other people involved.) The attorney refused saying he wanted the entire amount. There is now talk of freezing assets, and wage garnishment because the three others involved refuse to cooperate. Is it legal for the attorney to do this, if my brother has made an effort to pay the judgement? His lawyer doesn't seem to have any answers, just wait and hope the others pay- but my brother is afraid of what continuing the issue could result in.
    Thank you!

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