News & Analysis as of

Limited Liability Company (LLC) Judgment Creditors

Patton Sullivan Brodehl LLP

LLC “Lien Priority” Battle: Charging Order vs. UCC Financing Statement

A charging order is a device used by a judgment creditor to collect on a judgment against an LLC member. The charging order imposes a lien on the judgment debtor’s economic (or “transferable”) interest in the LLC — the order...more

Allen Matkins

Federal Court Rules Alter Ego Liability Of Members Is Governed By State Of Formation

Allen Matkins on

In an opinion issued last week, U.S. District Court Edward M. Chen ruled that Ohio law applied to an alter ego claim against the members of an Ohio limited liability company.  Greenlight Sys., LLC v. Breckenfelder, 2021 U.S....more

Patton Sullivan Brodehl LLP

“Reverse Veil Piercing” to Reach an LLC’s Assets

“Piercing the corporate veil” — also referred to as “alter ego” liability — is a familiar concept under California law. Ordinarily, a corporation or other entity (such as an LLC) is considered a legal entity separate and...more

Allen Matkins

Federal Court Allows Reverse Veil Piercing Of Unincorporated Association

Allen Matkins on

Last August, I published this post about the Fourth District Court of Appeal's decision allowing reverse veil piercing in the case of a Delaware limited liability company even though the court had refused to allow it in the...more

Womble Bond Dickinson

Charging Orders

Womble Bond Dickinson on

A “charging order” allows a judgment creditor to receive a debtor’s share of distributions from a limited liability company (LLC) or a partnership. With the proliferation of LLCs in the last 20 years, understanding “charging...more

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