Trouble is, if they aren't slapped down very hard indeed then it will be used as an example of “look how much you can misbehave and still get away with it”.
I still have visions of the judge passing a case to the DOJ who drop the ball, or referring them to their respective Bar Associations who deliver only mild slaps on the wrists.
The reason LLCs put LLC after their names is to inform principals choosing to enter contract with them that they are protected by liability limitations. If I choose to buy a fridge from an LLC and it goes BK after taking my money I know that I have a low chance of getting my money back. And I knew that when I chose to give them my money.
Righthaven went after people without giving them any choice. The sued parties never had an option of "shall I be sued by an LLC or another sort of company". I think the limitation of liability may not apply here.
(Certainly I think it should not apply but that's just me.)
Re:
Oh, it will be used as an example, all right.
Trouble is, if they aren't slapped down very hard indeed then it will be used as an example of “look how much you can misbehave and still get away with it”.
I still have visions of the judge passing a case to the DOJ who drop the ball, or referring them to their respective Bar Associations who deliver only mild slaps on the wrists.
What can the judge do entirely by himself?
Limitation of liability may not apply
The reason LLCs put LLC after their names is to inform principals choosing to enter contract with them that they are protected by liability limitations. If I choose to buy a fridge from an LLC and it goes BK after taking my money I know that I have a low chance of getting my money back. And I knew that when I chose to give them my money.
Righthaven went after people without giving them any choice. The sued parties never had an option of "shall I be sued by an LLC or another sort of company". I think the limitation of liability may not apply here.
(Certainly I think it should not apply but that's just me.)