Jacksonville, FL asked in Contracts for Florida

Q: I intend on suing a business for breach of contract but am not sure which LLC to name as the defendant. There are 2

The business recently changed its name and has established a second LLC . When I looked it up, the old business name is no longer registered but the LLC for it is still active. It just says “SEE NOTES” where the business name was . Do I list both the old and new business names and both LLC’s to be safe or the old one , new one? I’m so confused as to how to proceed . I don’t want the case dismissed over naming the wrong business name as the defendant. Everything else is the same on both LLC’s - same addresses, name of registered agents , Managing partners, etc .

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2 Lawyer Answers
Terrence H Thorgaard
Terrence H Thorgaard
Answered
  • Freeeport, FL
  • Licensed in Florida

A: If your contract was with the "old" business, that is the one you would sue. If you are awarded a judgment, you might want to see if the "old" business improperly transferred assets to the "new" one.

Charles M. Baron agrees with this answer

Charles M.  Baron
Charles M. Baron
Answered
  • Hollywood, FL
  • Licensed in Florida

A: Generally, if a Fla. LLC or corporation listed on Sunbiz.org as being active at the time of the breach is still in existence, that would be the one entity to sue. Not sure what you mean by "the business recently changed its name"; if you mean its registered fictitious name, that generally would be irrelevant, as a fictitious name (itself) is not an entity to sue. If an LLC is called "ABC, LLC" and has a registered fictitious name "XYZ Store", you would generally sue "ABC, LLC d/b/a XYZ store" (d/b/a means "doing business as"), but you can simply sue "ABC, LLC".

HOWEVER, if they started a new LLC with the same principal address, a problem you may have is that the first LLC may not have a bank account with any funds to collect from. In fact, that may be the very reason they started the new LLC and kept the old LLC going - so that if the second LLC is sued, they can assert a defense that you sued the wrong entity. An issue to examine in that situation is whether you could assert that the business is playing a shell game to avoid liability, justifying suit against the new LLC, or, after a judgment is entered against the old LLC, whether you might convince a Court to permit collection procedures against the new one due to fraudulent transfer of assets, as Mr. Thorgaard indicated.

Note that this, as well any response on this forum, is for educational purposes, not legal advice that you can rely on, as the disclaimer on the question form indicates. My response gives you issues you can discuss with an attorney.

Terrence H Thorgaard agrees with this answer

1 user found this answer helpful

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