159 So. 3d 1159
La. Ct. App.2015Background
- Plaintiffs (Donald C. Hodge, Jr. and Rachel Hodge) allege their father died when a ladder-style deer stand’s straps failed and it fell.
- Plaintiffs sued Strong Built International, L.L.C. (successor to Strong Built, Inc.), Ken Killen (member/manager), and others under the Louisiana Products Liability Act.
- Killen moved for summary judgment arguing: (1) the subject deer stand was not manufactured by Strong Built International, and (2) he had no individual liability as an LLC member/manager under La. R.S. 12:1320.
- The trial court granted Killen’s motion and dismissed claims against him; plaintiffs appealed only the personal-liability ruling.
- Killen submitted an affidavit and corporate records showing Strong Built International was an LLC of which he was member/manager and that his role did not include personally designing, supervising, or manufacturing the deer stands.
- Plaintiffs failed to produce evidence showing Killen’s conduct fell outside LLC liability protections (no evidence of fraud, professional breach, or other negligent/wrongful acts meeting Ogea factors).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Killen can be held personally liable for defects in the deer stand | Killen was the alter ego or otherwise personally responsible as manufacturer/designer; exceptions to LLC immunity apply | Killen is protected by LLC limited-liability statute; he did not personally design/manufacture or commit fraud/negligence outside his LLC role | Summary judgment for Killen affirmed; plaintiffs failed to create genuine factual dispute showing personal liability |
| Whether plaintiffs met burden to pierce the LLC veil (alter ego) | LLC formalities were not followed; undercapitalization and commingling existed | Plaintiffs bear heavy burden to prove veil-piercing; record does not support veil disregard | Plaintiffs failed to rebut Killen’s evidence; veil not pierced |
| Whether La. R.S. 12:1320(D) exceptions (fraud, breach of professional duty, other negligent/wrongful act) apply | Exceptions apply because Killen participated in design/manufacture or committed wrongful acts | Killen is not a licensed professional; his affidavit denies personal involvement beyond managerial input; Ogea factors not met | No evidence that exceptions apply; Killen entitled to statutory immunity |
| Burden on summary judgment as to individual liability | Plaintiffs argue disputed facts exist about Killen’s role | Killen argued plaintiffs must produce evidence to meet trial burden once he pointed to absence of factual support | Appellate court applies de novo review and finds plaintiffs failed to show they could satisfy evidentiary burden at trial |
Key Cases Cited
- Ogea v. Merritt, 130 So.3d 888 (La. 2013) (establishes framework for applying La. R.S. 12:1320(D) and four-factor test for "other negligent or wrongful act" exception)
- Charming Charlie, Inc. v. Perkins Rowe Assoc., L.L.C., 97 So.3d 595 (La. App. 1 Cir. 2012) (membership/management alone does not create personal liability; veil-piercing factors)
- ORX Resources, Inc. v. MBW Exploration, L.L.C., 32 So.3d 931 (La. App. 4 Cir. 2010) (piercing corporate veil doctrine applies to LLCs)
- Riggins v. Dixie Shoring Co., Inc., 590 So.2d 1164 (La. 1991) (heavy burden on plaintiffs to show shareholders disregarded corporate entity absent fraud)
- Samaha v. Rau, 977 So.2d 880 (La. 2008) (standard of appellate de novo review for summary judgment)
- Petch v. Humble, 939 So.2d 499 (La. App. 2 Cir. 2006) (summary judgment on individual liability when plaintiff fails to show specific evidence of individual negligence)