Employment Law | Expert Legal Commentary
March 22, 2010
People v. Highgate LTC Management: Making an LLC Criminally Liable
People v. Highgate LTC Management LLC
By
Jeremy J. Gray of Zuber & Taillieu
The New York Supreme Court, Appellate Division, has held that an LLC can be criminally liable for willfully violating health laws and falsifying business records in the operation of a nursing home. In People v. Highgate LTC Management LLC, 69 A.D.3d 185, 887 N.Y.S.2d 298 (2009), the Appellate Division of the New York Supreme Court expanded a state penal law regarding the criminal liability of corporations to cover a limited liability company as well. The Court found that an LLC is a “hybrid” entity, that case law has developed sufficient analogous principles between corporations and LLCs, and that this matter involved such an important public interest that the extension of the corporation law to LLCs was appropriate, despite the lack of legislative language authorizing that extension.
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About the Author
Jeremy J. Gray is a Partner of Zuber & Taillieu, focusing on employment law.
Image Credit: ©iStockphoto.com/kirel
