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Ridgaway v silk n facts norman costello and joseph

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Ridgaway v. SilknFacts:Norman Costello and Joseph Ruggiero were members of Silk, LLC,the owner of Silk Stockings and Cafe Del Mar, which was a bar and adultentertainment nightclub in Groton, Connecticut.Anthony Sulls was drinkingheavily one night at Silk Stockings and, although he was obviously drunk,employees at Silk Stockings continued to serve him.Giordano (anothermember of the LLC) and Costello were working there that night.They bothgreeted customers (who numbered in the hundreds), supervised employeesand performedother PR work.When Sulls left the nightclub at 1:45 a.m.with two friends, he drove off the highway at high speed, killing himself andone of his passengers, William Ridgaway.nRidgaways estate sued Costello and Giordano personally.The defendantsfiled a motion for summary judgment seeking dismissal of the complaint.nIssue:Are Costello and Giordano personally liable to Ridgaways estate?
Ridgaway v. SilknHolding:Costello and Giordanos motion for summary judgment was denied. Theclaims against Giordano and Costello on not based on their ownership of the limitedliability company.Instead, plaintiff alleges that these two defendants were personallynegligent on the night that Ridgaway died. Giordano and Costello were both present,supervising other employees. Therefore, this case cannot be resolved on a motion forsummary judgment.nQuestion:Are members of an LLC personally liable for the debts of the business.Question:Isnt it obvious, then, that the court should grant the motion for summary
njudgment?Question:Isnt the whole point of an LLC to protect personal assets from business
nliabilities? Why would the court deny the motion for summary judgment?
Ridgaway v. SilknQuestion:Were the two defendants negligent that night?
nQuestion:What could the defendants have done to protectthemselves against suit?
n

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Term
Spring
Professor
MATTPOLZE
Tags
Business, Taxes, Corporation, Types of business entity, Limited Liability Company, Limited liability partnership, n

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