Estate of Countryman v. Farmers Coop. Assoc.
Iowa Supreme Court
679 N.W.2d 598 (2004)
After a propane gas explosion killed seven people, victims' families and estates (plaintiffs) sued propane supplier Double Circle, LLC and its 95%-owner and manager, Farmers Cooperative Association (Keota) (defendant), alleging Keota, acting through the manager it installed (Hopscheidt) to run Double Circle, directly made unsafe consumer-safety decisions - failing to warn users, advise gas detector installation, or ensure the propane's odorant was properly designed to reveal leaks. The trial court granted Keota summary judgment, reasoning Double Circle's LLC and operating agreements shielded Keota's liability arising solely from its membership status; the plaintiffs appealed that ruling.
Whether members of a limited liability company who actively participate in wrongdoing are shielded from personal liability.