An LLC Member Can Not Sue a Check Cashing Business or its Banks for a Member’s Embezzlement
While SLAVIN & MORSE is pleased to be a premier personal injury & injured workers trial law firm we are often called upon to do other things that involve trial. We are pleased to announce the successful handling of a case at the trial level and subsequently in the NJ Appellate court involving corporate commercial transactions and our client; a well known check cashing company of our Woodbridge office.
In the case of KUHN v. TUMMINELLI, 361 N.J. Super. 431 (App. Div. 2004), a check cashing business cashed checks made payable to a two-member limited liability company which was endorsed by one member of the limited liability company. The individual member was authorized to cash the checks but was not authorized to embezzle and convert the funds for his own use. The other member of the LLC could not successfully sue the checking cashing business or the banks involved.
While prudence and common sense are important in all business transactions the court was not willing to make a check cashing business a “guarantor” of the business relationships involving two members of a limited liability company.