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Business Associations Keyed to LoPucki, 2nd Ed.
Pannell v. Shannon
Citation:
425 S.W.3d 58 (2014)Facts
Ann Shannon organized Elegant Interiors, LLC in 2000 and was its sole member. In February 2004, the LLC entered into a lease for commercial space with Rick Pannell. In 2005, the LLC failed to file its annual report and pay the required fee, resulting in administrative dissolution by the Kentucky Secretary of State on November 1, 2005. In March 2006, while the LLC was still dissolved, Shannon negotiated new leasing terms with Pannell, signing both a release of the old lease and a new lease for less space. The new lease, like the original, explicitly named Elegant Interiors, LLC as the tenant. When rent payments for June and July 2006 were not made, Pannell sued both the LLC and Shannon individually on July 21, 2006. Shortly after the lawsuit was filed, Shannon sought and obtained reinstatement of the LLC on August 11, 2006, with the Secretary of State issuing a certificate that canceled the previous dissolution.
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