Can a business sue the employee of an LLC?

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Can a business sue the employee of an LLC?

I am the managing director of an LLC and through the company/ I contracted (no personal guarantee was signed) a “web development” company to produce a webpage. That company continued to deliver work not in line with the specifications as well as continuing to bill us. Ultimately, we stopped payment and now the “web developer” has filed a lawsuit against me individually (because I was his point of contact). Doesn’t the LLC provide limited liability against these matters (in Virginia)? How should I prepare a motion for defense?

Asked on September 24, 2011 under Business Law, Virginia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

In most business disputes, the employer (company entity such as a corporation or a limited liability company) as well as the employee or employees in contact with the opposing side gets named in the lawsuit as a matter of course. The employer typically agrees to defend and indemnify the employee on the lawsuit's defense where usually there is insurance coverage and defense counsel is appointed for the employer and the individually named defendant employee.

If you have not tendered your defense to your employer and your employer's insurance carrier regarding the lawsuit that you are in, you need to do so as soon as possible. It is very important to do this in that if there is a policy of insurance in place for the claims against you and your employer, legal counsel will be appointed for you by the insurance carrier.

Good luck.


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