LLCs to protect developers
The Ballard Square Condominium Owners Association sued the building’s developer, Dynasty Construction Co., in 2002, claiming that their recently built homes were riddled with leaks that had caused extensive building damage and asserting that Dynasty failed to meet construction standards.
The problem was, Dynasty was dissolved in 1995, and superior and appeals courts said the owners could not sue a corporation after its demise. But the owners appealed to the state Supreme Court, which heard the case earlier this year.
While researching developers of the various projects around town I noticed many LLC’s named after the project. I suspect it’s to limit liability in cases just like this.
First that story about agents and their secret compensation and now this article about developer’s liability avoidance tactics. Who is sticking up for us, the customers?