Tuesday, August 20, 2019

Attorney for LLC Not Attorney for its Members

Attorney for LLC Not Attorney for its Members

In a recent decision from Kansas, there was considered and rejected the suggestion that the attorney for an LLC was as well an attorney for each of its members. Green v. Blake, 2019 WL 3776009 (D. Kan. Aug. 12, 2019).

Green, Blake and Leonard were all members in an LLC organized in Oregon, 63rd St., Enterprises, LLC. Green filed suit against the Blake and Leonard asserting claims including fraudulent misrepresentation with respect to his having joined the LLC as a member. Green, in bringing that suit, utilized the services of Laner, an attorney who it was asserted had previously advised Blake and Leonard with respect to the LLC. On that basis, they sought his disqualification from the matter.

The court rejected that suggestion. Rather, it found that to the extent Laner had been involved with the LLC, it had been as counsel to the LLC and not the individual members. In addition, they could not bring forth evidence of particularized communications and representation with respect to the LLC. Falling back on the Kansas adoption of Rule 1.13 and the principle that the attorney for the organization is not as well the attorney for the constituent members, the motion to disqualify Laner as plaintiff’s counsel was denied.

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