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Business Associations
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BlueCrate LLC was formed to sell custom storage boxes. Its two members each contributed $500, kept no separate bank account for the first six months, and paid personal expenses from customer receipts. One member, Luis, signed a bank loan on a line marked "Borrower: BlueCrate LLC" and another line marked "Personal guarantor: Luis." The other member, Priya, did not sign the loan.
After a customer was injured by a box that Priya personally assembled with a missing latch, BlueCrate stopped operating. The week before closing, Luis and Priya each withdrew $20,000 while unpaid trade creditors remained. The bank sues Luis and Priya. The injured customer sues Priya and BlueCrate. A trade creditor seeks to recover the final withdrawals.
Which claims against Luis and Priya personally are likely strongest? Discuss.