Collateral Estoppel

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It might seem uncontroversial that the members of a limited liability company cannot follow with a personal lawsuit for injuries after their LLC litigates, and loses, claims based on the same issues.

But it took the Business Court a while to get to that conclusion last week, in Lancaster v. Harold K. Jordan and Co., 2014 NCBC 22.

The Plaintiffs were the member-managers of Village Landing, LLC.  The LLC had made claims against Harold K. Jordan and Co. in an arbitration asserting that HKJ had misrepresented that it would…

Continue Reading Collateral Estoppel Sinks LLC Members’ Claim

Today, Judge Jolly ruled on a Motion to Dismiss in Essa Commercial Real Estate, Inc. v. Five Trees, LLC, in which the issues involved defenses of issue preclusion based on an Arbitration Award. 

The Court determined that the Award was entitled to collateral estoppel effect — even though the Defendants had not been parties to the arbitration — and dismissed a number of Plaintiff’s claims.  It also held, however, that the Plaintiff could seek to enforce the Award against the Defendants.

The Award had been obtained by the Plaintiff against two members…

Continue Reading Plaintiff Collaterally Estopped Based On Arbitration Award