Reference no: EM131660554

Question: Limited Liability Companies. Michael Collins entered into a three-year employment contract with E-Magine, LLC. E-Magine was in business for only a brief time, during which it incurred considerable losses. In terminating operations, which ceased before the term of the contract with Collins expired, E-Magine also terminated Collins's services. In exchange for a payment of $24,240, Collins signed a "final payment agreement," which purported to be a settlement of any claims that he might have against E-Magine. Collins filed a suit in a New York state court against E-Magine, its members and managers, and others, alleging, among other things, breach of his employment contract. Collins claimed that signing the "final payment agreement" was the only means for him to obtain what he was owed for past sales commissions and asked the court to impose personal liability on the members and managers of E-Magine for breach of contract. Should the court grant this request? Why or why not? [Collins v. E-Magine, LLC, 291 A.D.2d 350, 739 N.Y.S.2d 15 (1 Dept. 2002)]