Corporate,
Contracts,
California Courts of Appeal
May 16, 2017
Contracts may hold up, even if signer had no authority to bind
In a recent appellate ruling, the court determined that third parties may benefit from a statutory safe harbor whereby an agreement is binding on an LLC even if the "manager" signing has no authority to sign.
Iain Mickle
Shareholder
Boutin Jones Inc.
555 Capitol Mall Ste 1500
Sacramento , CA 95814-4603
Phone: (916) 321-4444
Fax: (916) 558-6210
Email: imickle@boutinjones.com
UC Hastings
Andrea L. Bacchi
Of Counsel
Boutin Jones Inc.
555 Capitol Mall Ste 1500
Sacramento , CA 95814-4603
Phone: (916) 321-4444
Fax: (916) 441-7597
Email: abacchi@boutininc.com
UC Davis King Hall
In Western Surety Co. v. La Cumbre Office Partners, LLC, 8 Cal. App. 5th 125 (Cal. Ct. App. 2d Dist., Feb. 2, 2017), a limited liability company was subjected to claims for $6.07 million under an indemnity agreement even though the agreement was signed by an individual with no authority to bind the LLC and the agreement bore no relationship to the LLC's business. The court determined that third parties benefit from a statutory safe harbor whereby an agreement is binding on an LLC ...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In