VI. Llc Members Liable for Aiding and Abetting the Wrongful Act of Their Llc

• Library: South Carolina Limited Liability Companies (SCBar) (2020 Ed.)

VI. LLC Members Liable for Aiding and Abetting the Wrongful Act of Their LLC

Closely related to the "piercing the veil" mode of recovering against LLC members or managers is the doctrine of aiding and abetting. On a simplified basis, a group of South Carolina doctors had two entities, a management LLC and a medical PA.⁷³ The management LLC provided oncology drugs to the medical PA. Over time the PA failed to pay for drugs, while at the same time the doctors were being paid by their PA and also received distributions from their management LLC. The management LLC went into bankruptcy since it owed over $1 million dollars. The bankruptcy trustee brought, among other claims, aider and abettor claims against the doctors who were members of the LLC.

The doctors raised various defenses including that their actions were protected by the busines-judgment rule. The court had no trouble dismissing...