LLC question presented to WV Supreme Court - Beckley, Bluefield & Lewisburg News, Weather, Sports

LLC question presented to WV Supreme Court

Posted: Updated:
Photo courtesy of the West Virginia Supreme Court. Photo courtesy of the West Virginia Supreme Court.
  • Local NewsLocal NewsMore>>

  • Woman suffers minor injuries after car rolls on I-77 in Raleigh County

    Woman suffers minor injuries after car rolls on I-77 in Raleigh County

    Wednesday, July 30 2014 10:13 PM EDT2014-07-31 02:13:55 GMT
    Car rolled multiple times on I-77 North in Raleigh County.Car rolled multiple times on I-77 North in Raleigh County.
    In Raleigh County, a woman is miraculously not seriously injured, after her car rolls over on I-77 around 6:30 Wednesday night.An eyewitness tells us the woman was driving in the left lane on the northbound side. She suddenly veered off the road, over corrected,then slammed into the side of a tractor trailer. The car rolled multiple times before coming to a stop on it's roof.The witness says two small dogs ran out of the car. Moments later, the woman crawled out and ran after one of the dogs....
    In Raleigh County, a woman is miraculously not seriously injured, after her car rolls over on I-77 around 6:30 Wednesday night.An eyewitness tells us the woman was driving in the left lane on the northbound side. She suddenly veered off the road, over corrected,then slammed into the side of a tractor trailer. The car rolled multiple times before coming to a stop on it's roof.The witness says two small dogs ran out of the car. Moments later, the woman crawled out and ran after one of the dogs....
  • UPDATE: Deputies release description of Fairlea robbery suspect

    UPDATE: Deputies release description of Fairlea robbery suspect

    Thursday, July 31 2014 11:23 AM EDT2014-07-31 15:23:06 GMT
    A robbery at a video lottery parlor in Fairlea is under investigation by the Greenbrier County Sheriff's Office.  Now they are asking for anyone with information on the incident to call them with tips.
    A robbery at a video lottery parlor in Fairlea is under investigation by the Greenbrier County Sheriff's Office.  Now they are asking for anyone with information on the incident to call them with tips.
  • bn

    BREAKING: Possible Shooting in Mercer County

    BREAKING: Possible Shooting in Mercer County

    Thursday, July 31 2014 11:02 AM EDT2014-07-31 15:02:30 GMT
    Possible Shooting in MontcalmPossible Shooting in Montcalm
    Emergency dispatchers confirmed there was a 911 call at 9:46 a.m. on Thursday of a possible gun shot in the Montcalm area of Mercer County.Dispatchers said the Mercer County Sheriff's Department responded to the scene along with the Bluefield Rescue Squad. One person has been transported to Princeton Community Hospital.Stay with 59News and wvnstv.com for updates on this developing story.
    Emergency dispatchers confirmed there was a 911 call at 9:46 a.m. on Thursday of a possible gun shot in the Montcalm area of Mercer County.Dispatchers said the Mercer County Sheriff's Department responded to the scene along with the Bluefield Rescue Squad. One person has been transported to Princeton Community Hospital.Stay with 59News and wvnstv.com for updates on this developing story.

Does West Virginia law allow someone to take limited liability company members or managers to court for an aggrieved action that occurred in the business or does state law protect them?

This question was presented in the Sept. 25 oral arguments hearing before the West Virginia Supreme Court in the case of Joseph Kubican v. The Tavern LLC doing business as Bubba's Bar and Grill, James Paugh, Lawson Mangum, Shaffer Amusement Company LLC and Harry Wiseman.

The Harrison County case specifically asks the state's highest court whether West Virginia's Uniform Limited Liability Company Act protects company members against someone who wants to "pierce the corporate veil."

Kubican filed the suit, asserting he was violently assaulted by Wiseman at the Bridgeport bar. He sought to amend the complaint to add the LLC members, Paugh and Mangum, saying there is enough evidence to hold them liable.

The Tavern, meanwhile, opposed the motion, saying West Virginia's Uniform Limited Liability Company prevents this veil piercing. Therefore, Kubican couldn't file his amended complaint.

In his brief to the state's highest court, Kubican asserted the Tavern didn't keep records on profits, losses or disbursements to members and said one of the members may have kept his funds with the Tavern's funds.

Kubican also argues Mangum used the Tavern building to conduct personal business and also used the business account to pay for personal expenses.

The brief also argues other states that have adopted a uniform act have acknowledged this type of veil piercing. Kubican argues other courts have not prohibited this and the state Supreme Court should do no differently.

The Tavern, meanwhile, argued that state code prevents managers or members from being held liable for debt, obligation or liability.

Gregory H. Schillace, who represented The Tavern, said other states have adopted something different than West Virginia. Schillace said the West Virginia Legislature made the decision that there is no veil piercing in the Mountain States.