Who gets sued in small claims

Question

Although I have been a landlord for many years, I do have a question, A tenant is suing for a security deposit. The property is deeded to an LLC but the tenant made all checks from 2016-2022 including 1st, including the last, and security to my wife who is not part of the LLC. Who should the tenant be suing??

Rick Bassett · Answer

A few years ago a tenant sued me personally in a security deposit dispute (In New Haven CT) even though the lease was in an LLC and all payments were made to the LLC.

When I pointed this out to the court (Judge?) they said they just wanted to push ahead as all parties were present and they would make a substitution of names on the court's paperwork. I suppose I could've made them re-file and come back another day but time is money but the Judge didn't seem like he was having any of it.

Samuel Eddinger · Answer

@Nancy Todice - with CT being so tenant friendly, sending the suit to the wrong person is probably not going to work on a technicality.  On the other hand, I've seen clerks throw out NTQ paperwork on a technicality when filed by the owner.  Good luck either way!

Henry T. · Answer

You. And the judge will ask you if youre the landlord.

Nathan Gesner · Answer

Welcome to the BiggerPockets forums!

The tenant should sue whomever their contract is with. If the LLC is listed as the Landlord, then that's who they should sue.

You screwed up. By accepting payment in your personal name, you've removed any protection an LLC may provide. You need to be very careful about keeping personal money and LLC money completely separate.

I doubt it will matter in this instance.