State court orders Kickstarted game creator to pay $54k for failing to deliver

Re:State court orders Kickstarted game creator to pay $54k f... by tinco on Friday September 11, 2015 @07:49PM (#10206742)

I think this is why you should always have an LLC when you do a Kickstarter. That way if your attempt fails, the funders can sue the LLC for their money back, the judge can award it and the LLC will file for bankruptcy.

That way only people who ran their LLC recklessly (i.e. not following the LLC rules) can be held personally liable. The 'good-hearted' will simply get a bankrupt LLC on their name.

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Re:State court orders Kickstarted game creator to pay $54k f... by tedunangst on Friday September 11, 2015 @07:59PM (#10206757)

Will it matter? It seems the people most likely to be sued are exactly those for whom the LLC will offer no shield.

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Re:State court orders Kickstarted game creator to pay $54k f... by arrosenberg on Friday September 11, 2015 @08:15PM (#10206795)

No, not in cases like this, given that most judges would pierce the veil in cases involving bad actors. However, given that a precedent for suing a failed Kickstarter was just set, it makes a ton of sense to form an LLC before doing a Kickstarter now, since funders may not make rational decisions about whether to sue or not if they don't get their rewards.

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Re:State court orders Kickstarted game creator to pay $54k f... by tedunangst on Friday September 11, 2015 @08:41PM (#10206851)

I would argue the precedent is now set for "bad kickstarters" not just "failed kickstarters", but ok.

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