Legal Question in Business Law in Maryland

LLCs Liability

Lets say their is a parent company, ABC Holdings LLC, that is the sole member of two subsidiary LLCs, 123 Holdings LLC and 456 Holdings LLC. Both 123 Holdings LLC and 456 Holdings LLC owns income-producing real estate as its main and sole business.

Here's the question. If one of the tenants of a unit in 123 Holdings LLC sues for lead paint poisoning and wins, would the plaintiffs be able to touch the assets of the parent company, ABC Holdings, and the other subsidiary? Or, since 123 Holdings is set up as an LLC, only the assets of 123 Holdings itself can be touched?

Thanks for any answers.


Asked on 8/23/03, 1:42 am

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: LLCs Liability

If you have an incident of lead poisoning there are many matters to consider. Lead paint brings potential liability as it is a public health matter.

The Lead Hazard Act of 1992 requires disclosure of the presence of known lead based paints and hazards by landlords. Criminal penalties as well as civil recoveries may occur. HUD regulations may apply.

All this said, a business entity cannot escape the requirements of law simply by forming entities to escape its legal obligation. Older homes in Baltimore are particularly susceptible to causing damage. If you suspect that your child has been injured by lead paint you should contact an attorney immediately.

Joe Holthaus

(410) 799-9002

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Answered on 8/23/03, 2:34 am


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