Reference no: EM131750404

Norman Costello and Robert Giordano were members of Silk, LLC, which owned a bar and adult entertainment nightclub called Silk Stockings. Costello and Giordano both worked at the bar as well, and supervised and conducted trainings for other employees, including the bartenders.

One night, Anthony Sulls came to a Silk Stockings and drank heavily. Though obviously drunk, employees at Silk Stockings continued to serve him. Costello and Giordano were both working on the night in question, and the evidence shows that they each served Mr. Sulls at least one drink.

Sulls left the nightclub obviously drunk and got in his car. He drove off with two of his friends and shortly thereafter crashed his car, killing himself and injuring one of his passengers, Bill Ridgeway. Mr. Ridgeway is now suing Costello and Giordano personally for damages related to his injuries.

1) Review the case Hodge v. Strong Built International, LLC and Section 17-1d in your text. Based on this information, and your lectures this week, answer this question--"When (if ever) can an individual member of an LLC be held responsible for the debts and liabilities of the LLC?"

2) Review the facts presented in the hypothetical above. Do you think a court in the case of Costello and Giordano might reach a different conclusion than the court in the Hodge v. Strong Built International with regard to the liability of the members of the LLC? Explain your reasoning.