Los Angeles, CA asked in Business Law, Civil Litigation and Contracts for California

Q: When can owner of a single member LLC sue personally against a 3rd party doing business with the LLC {not on behalf of}

Case: The sole member of an LLC filed a lawsuit in his individual name (as the plaintiff) against a company to sue them for contract fraud. The LLC owner was not aware that it could be a problem to file the suit in his name since he was personally financially injured and sees his LLC and himself as the same. But the defendants filed a demurrer saying he can't file the suit because he was not injured. They're saying the wrong person filed it. The hearing on the demurrer is next week. What can the Plaintiff argue (case law) to not get his case thrown out? How can he legally argue that HE as an individual suffered the harm and injury? The reason the Plaintiff did the contract in the name of the LLC is because the intellectual property he was licensing to the other company who committed the contract fraud was under the name of the LLC. For tax purposes etc. But no other person was injured except him since he's the sole owner. How can he win this demurrer fight & not have to start all over?

1 Lawyer Answer
Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: Path of least resistance, if you cannot amend your complain to add a plaintiff? Dismiss and start over. If it is an LLC, they have to be represented by an attorney.

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