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When most people say they’re worried about “getting sued,” they’re usually talking about being responsible a large tort verdict arising from a catastrophic injury or wrongful death.

A limited liability company is a type of business association recognized by state and federal governments as a legal entity independent of its owners and employees.

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In negligence, you had a general duty to do something in a reasonable way (like drive your car safely) and you messed up, so you have to pay for the harm you caused.

Another type of “tort” is an intentional tort, like defamation or tortious interference with business relations: you purposefully hurt me, so you should pay for the damage.

(I exclude Before limited liability, shareholders risked going bust, even into a debtors’ prison maybe, if their company did.

Few would buy shares in a firm unless they knew its managers well and could monitor their activities, especially their borrowing, closely.

“Agency” is the subject of this particular Restatement, and “Third” means it’s the third version, which was published in 2006. It doesn’t matter if you were “employed” by your LLC when you did it — you will still be liable, as will the LLC that “employed” you.

For reference of how intense these efforts are, the Second version was published in . Thus, in order to “protect your assets,” you need to put enough money into the LLC that it can completely pay any tort judgment against you, or else the injured person can go for your assets long after it has bankrupted the LLC.

The way was open to finance the mounting capital needs of the new railways and factories that were to transform the world.

Most everyone knows, although not by name, “vicarious liability” and “the doctrine of respondeat superior.” If, in the course and scope of your employment, you cause someone else harm, then your employer is liable for your conduct. 28, 2009)(noting, “The Court has come across no jurisdiction that applies a contrary rule.”).

In case you’re wondering, the Second version also said “[a]n agent who does an act otherwise a tort is not relieved from liability by the fact that he acted at the command of the principal or on account of the principal …”) An “agent” is a broader definition of “employee:” it’s anyone acting on behalf of the company. Here’s a case from the Virgin Islands less than a month ago, noting in passing the cases it found with minimal research: 937 A.2d 760, 794 n.153 (Del. 2007) (‘Officers and directors may be held individually liable for personal participation in tortious acts even though performed solely for the benefit of the corporation[.]‘) (quotation omitted); , 2009 U. That just defeats the nominal purpose of the LLC (to avoid liability), since you’ll have to pay the same amount anyway, just through the LLC.