LLC Law Monitor reports on two recent decisions (one in Montana, and the other in Louisiana) dealing with personal liability of the manager of an LLC:

A manager or member can also be tagged with personal liability when acting for an LLC, if the member’s or manager’s conduct can be characterized as a tort such as fraud, malpractice, or negligence. The more clear-cut cases involve conduct such as fraud or negligence that results in personal injury, such as an LLC’s delivery driver that negligently drives the company’s truck and injures someone. Whether the driver is a member, manager, or simply an employee of the LLC, the driver will be personally liable.

The theory is less clear where the member’s or manager’s conduct simply involves carrying out the LLC’s contract and does not involve a recognized and regulated profession such as medicine, law, or architecture. The dissent in Nunez viewed Lenard as not being a recognized professional, saw his conduct as simply carrying out the LLC’s performance of the contract in a way that resulted in a defective product, and would have applied the liability shield of Section 1320(B).

The post, which is worth reading in its entirety, can be found here.