In a ruling likely to make life easier for numerous businesses, including law firms, the Colorado Supreme Court said on June 10 that creditors of a limited liability company alleged to be facing insolvency could not go after its individual owners for payment on a debt.
The case, one of several that has sprung up as businesses face financial struggles in the recession, clarified case law in Colorado and reversed a decision of the Colorado Court of Appeals, according to Giovanni Ruscitti, founding partner of Berg Hill Greenleaf & Ruscitti in Boulder, Colo. Ruscitti, who represented the limited liability company in the case, talked to The National Law Journal about the significance of the court’s ruling.
