Monday, March 22, 2021

More on LLCs and Their Members are Separate and Distinct


More on LLCs and Their Members are Separate and Distinct

            In this 2021 decision the Kentucky Court of Appeals was focused upon whether Cabinet for Health and Family Services has the authority to issue an enforceable subpoena to a person not resident in Kentucky.  In the course of answering “no” the court addressed the distinction between an LLC and its members.  Brightmore Home Care of Kentucky LLC v. Cabinet for Health and Family Services, No. 2019-CA-1409-MR, 2021 WL 222729 (Ky. App. Jan. 22, 2021).

            In connection with a certificate of need hearing, the Cabinet issued subpoenas to the two members of Brightside, it being the applicant.  Those subpoenas were served on Brightside’s registered agent. Finding the Cabinet did not have authority to issue to subpoenas, the court as well noted that the service through the LLC’s registered agent was ineffective.

“Finally, serving a subpoena on an LLC, or its agent, is not the same as serving a subpoena on a member of that LLC.  LLCs and their members are separate and distinct entities.”, citing Turner v. Andrew, 413 S.W.3d 272 (Ky. 2013).

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