LLC be held liable for harm caused by lead-based paint pursuant to a housing code provisio

Full Answer Section

     

• Owning, Holding, or Controlling the Property: If the housing code provision uses terms like "owns, holds, or controls" the title, it suggests the intent to hold individuals with some level of ownership or decision-making authority responsible. LLC members, even if not the sole titleholder, might be considered to "control" the property if they have significant involvement in management decisions regarding the property.

Factors for Potential Liability: Here are some factors a court might consider when determining if an LLC member can be held liable:

• Level of Ownership:The percentage of ownership in the LLC can be a factor, but even a minority owner could be liable if they have control.
• Management Involvement:Direct involvement in decisions regarding maintenance, repairs, and lead paint testing can increase the likelihood of liability.
• Knowledge of Lead Paint:If the member knew or should have known about lead paint hazards and failed to take action, it weakens their position.

Recommendation: It's always advisable to consult with an attorney specializing in real estate law for specific legal advice. They can analyze the specific wording of the housing code, the LLC operating agreement, and the member's involvement in managing the property to determine the potential for liability.  

Sample Answer

   

Yes, a member of an LLC can likely be held liable for harm caused by lead-based paint under a housing code provision that imposes liability on any individual who "owns, holds, or controls" the title to the property. Here's why:

• LLC Veil Piercing: In most cases, LLCs offer limited liability protection to their members. This means that a member's personal assets are generally shielded from debts and liabilities of the LLC. However, there are exceptions where the court can pierce the corporate veil and hold members personally liable.