Question
What are the multiple legal issues present: Leon Titan has approached you for legal advice regarding his business and the events of the last couple
What are the multiple legal issues present:
Leon Titan has approached you for legal advice regarding his business and the events of the last couple weeks. He describes the following: Leon and Gary are business partners in Widget, LLC in Michigan who manufacture widgets for the automotive industry. Leon is active and manages the company. Gary owns 50% of Widget, LLC but is not active and lives in Florida. Gary does have access to company information and financial accounts. Leon has recently discovered that Gary has been paying for personal expenses directly from the bank accounts of Widget, LLC because his personal finances are in ruins. Widget, LLC has 100 employees some are laborers and others are in the areas of sales and general administration. Brett a sales representative for Widget, LLC entered into a contract with Electric Motors Inc. in California to provide Widgets for the production of Electric Motors' new self driving car. All widgets ordered per the contract were manufactured and loaded onto a semi truck to be delivered to Electric Motors in California. En route of delivery the semi truck is pulled over by an Iowa State Trooper who measures the length of the semi truck and indicates that it is in violation of the Iowa State Statute limiting length of semi trucks more than any other state and that the truck must remain parked until smaller conforming trucks can take the cargo and proceed. This causes a long delay and the widgets are not delivered in the original time period defined by the contract between Widget, LLC and Electric Motors. Eventually the parts do make it to California and are used in production of the vehicle as intended but the delay in delivery of the parts cause production delays and contractual fines of $10,000. 500 vehicles are produced and hit the roads almost immediately. One of those vehicles driven by Texting Man is involved in a traffic accident when the vehicles self driving system does not stop appropriately at an intersection causing severe injuries to the leg of a Run Fast, a USA Track and Field runner driving the other vehicle in the accident. Run Fast's injuries prevent her from competing in the upcoming meet and cause her to lose endorsements of $100,000 in addition to her physical injuries. Run Fast sues Texting Man, Electric Motors Inc., and Widget, LLC claiming that each has fault in her injuries. Leon Titan asks you to explain all the legal aspects to him my way of a memo that will provide the law and likely outcomes of these events with a conclusion as to how he should proceed.
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