Walter Matjasich and Cary Hanson organized Capital Care, LLC, in Utah. Capital Care operated, and Matjasich and

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Walter Matjasich and Cary Hanson organized Capital Care, LLC, in Utah. Capital Care operated, and Matjasich and Hanson managed, Heartland Care Center in Topeka, Kansas. LTC Properties, Inc., held a mortgage on the Heartland facilities. When Heartland failed as a business, its residents were transferred to other facilities. Heartland employees who provided care to the residents for five days during the transfers were not paid wages. The employees filed claims with the Kansas Department of Human Resources for the unpaid wages. Kansas state law provides that a corporate officer or manager may be liable for a firm’s unpaid wages, but protects limited liability company (LLC) members from personal liability generally and states that an LLC cannot be construed as a corporation. Under Utah state law, however, the members of an LLC can be personally liable for wages due the LLC’s employees. Should Matjasich and Hanson be held personally liable for the unpaid wages? Explain.

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Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

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