§ 4A-920, an LLC with a forfeited charter is a proper party to be sued, and may defend and participate in these proceedings. Dispatch Defendants argue that because they are Maryland Limited Liability Companies that have forfeited the right to do business in Maryland as a result of failure to file tax returns are shielded from liability, and therefore, Plaintiff has failed to plead a viable cause of action against them.ĭefendants’ Motion to Dismiss should be denied, because under Maryland law limited liability companies that have forfeited their articles or organization merely lose the right to do business in Maryland and are not prevented from defending any action, suit, or proceeding brought against them.ġ.- Under Md. Upon receiving the Plaintiff’s complaint, Defendants Executive and Worldwide (hereinafter collectively referred to as “Dispatch Defendants”), filed a Motion to Dismiss Plaintiff’s Complaint under Maryland Rule 2-322(b)(2) for failure to state a claim upon which relief can be granted. Plaintiff filed his complaint on Februalleging (1) a breach of contract claim against Defendant State Farm Insurance Company for failing to make any payments to Plaintiff Hall under the uninsured motorist provision of his insurance policy (2) a negligence claim against Defendant Lorenso (3) agency claims against Defendant Executive Dispatch, LLC (“Defendant Executive”), Defendant Executive Dispatch Worldwide, LLC (“Defendant Worldwide”), and Defendant Gregory Lee (4) negligent entrustment claims against Defendant Worldwide, Defendant Dispatch, and Defendant Gregory Lee and (5) negligent hiring claims against Defendant Gregory Lee and Defendant Dispatch. Plaintiff suffered debilitating physical injuries as a result of the collision. The force of the impact caused Defendant Lorenso’s vehicle to skid back across all lanes of traffic and strike the barrier on the left-hand side of the road before coming to a complete stop. While Defendant Lorenso was operating the vehicle, he swerved to avoid a piece of debris in the roadway, lost control and collided with the barrier on the right-hand side of the road. The collision occurred while Defendant Lorenso was traveling southbound on Highway 295 (Baltimore/Washington Parkway). The vehicle operated by Defendant Lorenso was co-owned by Defendant Gregory Lee, both of whom were employees, agents, or servants acting on behalf of Defendant Executive Dispatch, LLC and/or Defendant Executive Dispatch Worldwide, LLC, a limousine company that serviced the Baltimore metropolitan area. On that date, Plaintiff David Hall was a passenger in a commercial vehicle operated by Defendant Paul Lorenso. This is a single automobile collision which occurred on July 19, 2020. In support thereof, Plaintiff states as follows: Miller, Jr., and Miller & Zois, LLC, hereby responds to the Defendants’ Motion to Dismiss filed by Executive Dispatch, LLC and Executive Dispatch Worldwide, LLC (hereinafter collectively referred to as “Dispatch Defendants”), and respectfully requests that Defendants’ Motion be denied. Plaintiff, David Hall, by and through his attorneys, Ronald V. Plaintiff’s Response to Defendants’ Motion to Dismiss and Motion for Sanctions Under Md. IN THE CIRCUIT COURT FOR BALTIMORE CITY, MARYLAND As a practical matter, we often sue defunct LLCs because there was insurance coverage at the time of the negligence. There is no impediment to suing a forfeited business. 651, 656, 703 A.2d 1287, 1289 (1998) (If the company’s “charter is forfeited for non-payment of taxes or failure to file an annual report, the corporation is dissolved by operation of law and ceases to exist as a legal entity.”).īut capacity to be sued as a defunct LLC is an entirely different story as this motion makes clear. 151, 163, 857 A.2d 1095, 1101 (2004) (A “corporation, the charter for which is forfeit, is a legal non-entity….”) Kroop & Kurland, PA. There is no question that when a company forfeits its charterm the company ceases to exist as a legal entity by operation of law. Below you will find our opposition to dismiss a defunct LLC as a defendant.
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