When a loved one dies due to the negligence or misconduct of another party in Virginia, the surviving family members may have a wrongful death claim. However, these cases become more complicated when the liable party is a limited liability company (LLC). LLCs have unique protections and structure under the law that impact how wrongful death claims proceed. This article will examine some of the key issues and solutions when pursuing wrongful death claims against LLCs in Virginia.
Determining the Liable Party
The first challenge is identifying the proper defendant. An LLC is treated as a legal entity separate from its owners. This means that suing the LLC itself is not the same as suing the individual owners. Plaintiffs need to name the correct party in the lawsuit.
For example, if a delivery driver for an LLC causes an accident, you would sue the LLC as the employer. The individual driver may be liable too, but the LLC is typically the target defendant since it likely has more resources to pay damages.
Piercing the Corporate Veil
LLCs also have limited liability protection for owners. Generally, the owners are not personally responsible for debts and liabilities of the LLC. This can make it harder to recover damages if the LLC itself lacks sufficient funds.
However, plaintiffs may try to “pierce the corporate veil” in some cases. This involves showing that the LLC owners disregarded the separate legal entity and acted as if the LLC did not exist. Factors like commingling personal and business funds or undercapitalizing the LLC can help prove veil piercing. If successful, owners lose limited liability and become potential defendants.
Insurance Considerations
Most LLCs carry liability insurance policies to cover accidents and wrongful death claims. But insurance disputes can create delays. The LLC insurer may deny coverage, dispute the claimed damages, or try to lowball settlement offers.
Having an experienced wrongful death attorney handle negotiations can help maximize insurance recoveries. If the policy limits are insufficient, additional assets of the LLC and possibly its owners could be pursued. Make sure to consult an attorney before signing any insurance settlement releases.
Procedural Requirements
When suing an LLC in Virginia, certain procedural rules must be followed. This includes properly serving the LLC defendants and identifying the correct parties in pleadings. LLCs have registered agents who are authorized to accept legal service on their behalf. Naming the right agent in the complaint and serving process correctly ensures the case gets off on the right foot.
Additionally, LLCs structure their management and ownership through operating agreements and by recording state filings. Confirming who the authorized leaders and members are through document reviews and discovery is important. This helps join the right defendants and can reveal who contributed to any negligence.
Managing Multiple Defendants
It is not uncommon for wrongful death cases against LLCs to involve multiple defendants. For example, both the LLC employer and the employee driver may be sued. This can add complexity when determining the allocation of fault and liability. Defendants often try to blame each other in multi-party cases.
An experienced wrongful death lawyer can manage this strategically through motions, discovery tools, settlement leverage, and trial presentation. The goal is crafting arguments and evidence that anticipate finger-pointing defenses among defendants. Creativity and adaptability help achieve full accountability.
Statutes of Limitations
Virginia sets strict deadlines called statutes of limitations for filing wrongful death claims. Different rules may apply depending on the defendants – as little as 12 months in some cases. Carefully reviewing and complying with applicable statutes of limitations is crucial when suing LLCs. An LLC will not hesitate to seek immediate dismissal of a case filed after the deadline.
Expert Consultation
To successfully navigate an LLC wrongful death case, working with professionals like business lawyers, CPAs, and financial experts is invaluable. They can analyze the LLC structure, ownership, assets, insurance, and other complex issues to develop a winning approach. Expert help is well worth the investment for the best possible claim resolution.
Settlement Considerations
The large majority of wrongful death lawsuits settle out of court before trial. However, settlements involve extensive negotiations when LLC defendants are involved. Experience with LLC insurance policies, ownership structures, and valuation of cases helps maximize settlement recoveries.
Be wary of lowball offers that do not sufficiently compensate for the profound loss of a loved one. An aggressive posture combined with receptive negotiation often produces the optimal settlement amount with an LLC defendant.
Trial Readiness
If a reasonable settlement is not offered, the attorney must diligently prepare the case for trial against the LLC. This means thoroughly investigating the accident and the LLC’s role, retaining experts, and utilizing discovery to obtain company documents, emails, financial records, and other important evidence. Courthouse steps settlements are common as cases head to trial. However, being fully ready to take the case before a jury is the best leverage.
Overcoming Delay Tactics
LLC defendants often try to delay legal proceedings to wear down plaintiffs over time. They may dispute jurisdiction, seek improper venue transfers, resist discovery, file frivolous motions, and use other stalling techniques.
A steadfast plaintiff’s lawyer experienced with these tactics can counteract them through aggressive responses, savvy motion practice, court conferences, and stern warnings against abuses of process. Judges do not look kindly on unreasonable delays.
Financial Investigation
Examining the LLC’s finances is also key. This determines collectability of assets and insurance coverage. Plaintiffs can utilize audits, subpoenas, discovery tools, and asset searches to get a full picture of the LLC’s monetary resources. Any fraudulent transfers or hiding of funds may be grounds to widen the liability net.
Out-of-State Defendants
If the liable LLC is headquartered outside of Virginia, additional hurdles arise. Long-arm statutes and minimum contacts tests must be satisfied to establish jurisdiction over foreign entities. Plaintiffs may need to initially file a suit in the LLC’s home state and then seek transfer. Choosing the optimal venue is a strategic decision.
LLC Wrongful Death Claim Complexity
When an LLC contributes to a wrongful death through negligence or misconduct, seeking fair compensation involves navigating complex legal and financial issues. Hiring a knowledgeable attorney with specific experience handling LLC defendants in wrongful death litigation is strongly advised. Do not delay, as time-sensitive deadlines and procedures must be met.
If you lost a family member due to another party’s actions, contact Monge & Associates for a free case review today at 888-477-0597. With 32 offices located in 19 states, including Virginia, Georgia, and Mississippi, we can help evaluate your claim and pursue the maximum recovery you deserve.