Hello. I sued my ex-landlord's LLC in Las Vegas, NV. Turns out he filed an Answer, not using an attorney...

Question

and he transferred his assets away and shut down his LLC and stopped responding.  I asked for case ending sanctions against him.  They were granted.  I had NO IDEA how to get a default judgment and it took me a few years to figure it out.  I finally did though and got a judgment for almost $8,000.  A California attorney suggested I ask the Las Vegas Justice Court to pierce the corporate veil.  I did and the guy filed a perjury-filled motion to vacate default judgment.  The court accepted it instead of requiring him to hire legal counsel to defend his LLC. Long story short, the judge told me I had to sue him personally to collect the money owed by his LLC but then they set aside my judgment against his LLC. I sued him personally for perjury, fraud, fraudulent conveyance in CA small claims but the judge isn't sure if he has jurisdiction or not. Defendant is further lying, saying this is the second time I'm suing him when I only sued his LLC previously. Def. resides in California. Thanks!

James L. Arrasmith · Answer

Based on the complex legal situation you've described, here are a few thoughts and pieces of advice: 
 
1. Jurisdiction: The California small claims court judge is right to question jurisdiction over the defendant, especially if he resides in Nevada and the previous lawsuit was in Nevada. Generally, a court needs to have personal jurisdiction over the defendant to hear the case.  
 
2. Piercing the Corporate Veil: The advice to ask the Nevada court to pierce the corporate veil was sound. When an LLC is used to perpetrate fraud or other wrongdoing, courts can sometimes disregard the corporate entity and hold the individual owners liable. However, veil piercing is very fact-specific and can be difficult to obtain. 
 
3. LLC's Default: It's unusual that the Nevada court would allow the LLC owner to represent the LLC without an attorney and to set aside the default judgment without a compelling reason. Generally, LLCs must be represented by an attorney in court. 
 
4. Separate Lawsuit: The Nevada judge's advice to sue the owner personally for the LLC's debt is questionable, as that seemingly defeats the purpose of having an LLC. However, if fraud can be proven, a personal lawsuit may be viable. 
 
5. Perjury and Fraud Claims: If you have strong evidence of perjury, fraud, and fraudulent conveyance by the LLC owner, those could potentially be separate claims against him personally. But jurisdiction remains a threshold issue. 
 
6. Legal Counsel: Given the complexity of this multi-state litigation involving an LLC and allegations of fraud, it would be very advisable to seek legal counsel if at all possible, rather than proceeding pro se. Many attorneys offer free initial consultations. 
 
In sum, you face an uphill battle trying to collect from an out-of-state LLC whose owner has allegedly committed fraud. Your best path forward may be to consult with a California attorney who can assess the viability of your claims against the owner personally and the jurisdictional issues. I'm sorry I can't give you a clear solution, but I hope this general guidance is somewhat helpful as you navigate this challenging situation. Best of luck to you.

Leon Bayer · Answer

You have done a wonderful job so far. Congratulations for doing it. 
 
Now it is time for reality. 
 
In my opinion, California has jurisdiction because of the defendant's residence there. The judge may see it differently. But even if you win in California, I doubt you will ever collect. Crooks do not pay their bills, and they don't care how many times they get sued.

Delaram Keshvarian · Answer

Thank you for asking the question! 
 
Personal jurisdiction (PJX) is about the power of the court over the person or entity. It is about fairness. There must be personal jurisdiction over the person so the court can hear the case. Some of the instances that there is personal jurisdiction over a person is when:  
  
1. The person resides in the state;  
2. The person was personally served with process (complaint and summons); or  
3.  The real property subject of the litigation is located in the state that the claim is brought to its court. 
 
If the defendant who has objection to the lack of personal jurisdiction does not bring it up in the first appearance, they will wave it. If they assert their objection to the personal jurisdiction and it's a valid objection and the court grants it, the case will be dismissed. If the case gets dismissed you can file for the second time. (but if for the second time, the case is dismissed, it is with prejudice and cannot be refilled anymore.) 
 
The case that is filed in the wrong state (improper forum), can be transferred to the proper state. 
 
Since the defendant here resides in California, there is jurisdiction over him. 
 
There are other legal issues in this case that need a thorough evaluation, and cannot be addressed here: 1. Whether the defendants are different in these two cases? 2. Whether there was perjury, fraud, etc. in dismissing the previous case? 
 
This is merely discussion of CA general laws and not a legal advice. For a comprehensive advise, more specific facts and investigation are needed. I recommend you consult with an attorney in more detail.  
Please let me know if you need further assistance.  
Wish you luck.

Q: Hello. I sued my ex-landlord's LLC in Las Vegas, NV. Turns out he filed an Answer, not using an attorney...