Tuesday, August 15, 2023

The LLC As a Corporation -- The Hits Keep Coming

A new opinion this week tells us that "Defendant, Intermed Resources TN, LLC, [is] a Tennessee limited liability company that markets medical equipment."  Camber Spine Technologies v. Intermed Resources TN, LLC, No. CV 22-3648, 2023 WL 5182597, at *1 (E.D. Pa. Aug. 11, 2023). The opinion later, though, tells us that Intermed is a "Tennessee limited liability corporation." It was right, before it was wrong. 

The United States Supreme Court has told us that the test for general personal jurisdiction for LLCs is the same test that is used for corporations. Daimler AG v. Bauman, 571 U.S. 117, 123 (2014). Unfortunately, in that case, Justice Ginsburg referred to "MBUSA" as "a Delaware limited liability corporation." MBUSA is an LLC, not a corporation. It's a little less clear in cases of specific jurisdiction, so there is least some potential litigation value in the getting this right, in addition the more general principle of being accurate. 

Camber Spine was one the case calling an LLC a corporation that I found this week. Last week there were four more: 

  1.  Ocean Tomo LLC v. Golabs, Inc., No. 22 C 4966, 2023 WL 4930348, at *2 (N.D. Ill. Aug. 2, 2023) )" Plaintiff is a limited liability corporation with a principal place of business in Illinois . . . ."). 
  2. Jackson v. Reliance Constr. Servs., LLC, No. 1:20-CV-799, 2023 WL 4933269, at *2 (S.D. Ohio Aug. 2, 2023) ("Defendant Reliance Construction is a limited liability corporation that is currently unrepresented.").
  3. Universitas Educ., LLC v. Benistar, No. 3:20-CV-00738 (KAD), 2023 WL 4932034, at *4 (D. Conn. Aug. 2, 2023) ("Greyhound Partners is a Connecticut limited liability corporation with the following current members: Greyhound Management Inc. and Constance Ann Carpenter.") 
  4. NetApp, Inc. v. Cinelli, No. 2020-1000-LWW, 2023 WL 4925910, at *12, n.172 (Del. Ch. Aug. 2, 2023) (citing "Metro Communication Corp. BVI v. Advanced Mobilecomm Techs. Inc., 854 A.2d 121, 153-55 (Del. Ch. 2004)  and stating that "imputing fraud to the corporation where the manager of a limited liability corporation designated by the corporation made false statements.")

I suppose it is painfully obvious I am not going to let this go. If nothing else, these cases are reinforcing the need for my new paper, with Samantha Prince (available on SSRN): An LLC By Any Other Name Is Still Not A Corporation. We're still talking to editors for those interested in helping us clean up this mess.  One day, we hope to put an end to this madness.

https://lawprofessors.typepad.com/business_law/2023/08/the-llc-as-a-corporation-the-hits-keep-coming.html

Corporations, Joshua P. Fershee, Litigation, LLCs, Research/Scholarhip | Permalink

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