Opinion ID: 2570791
Heading Depth: 1
Heading Rank: 3

Heading: Utah Wage Law

Text: If Utah's wage payment law governs Matjasich's liability, Matjasich is personally liable for the unpaid wages of Capital Care's employees. Matjasich argues that it is contrary to logic to conclude that a foreign limited liability company operating in Kansas is liable in situations where a Kansas limited liability company is not subject to liability. We note that this court is not unaccustomed to applying the law of foreign jurisdictions where, pursuant to contractual provisions or statute, foreign law applies. See, e.g., Safeco Ins. Co. of America v. Allen, 262 Kan. 811, 941 P.2d 1365 (1997). K.S.A. 17-7636 clearly states the laws of the state, territory, possession, county, or other jurisdiction under which a foreign limited liability company is organized govern its organization and internal affairs and the liability of its members. Next, Matjasich argues that the provision in K.S.A. 17-7636 requiring Kansas courts to apply the foreign jurisdiction's laws to determine the liability of its members refers to the foreign state's limited liability company enabling legislation and not the foreign state's laws outside its enabling legislation. When a statute is plain and unambiguous, the appellate courts will not speculate as to the legislative intent behind it and will not read such a statute so as to add something not readily found in the statute. In re Marriage of Killman, 264 Kan. 33, 42-43, 955 P.2d 1228 (1998). The rule of strict construction means that ordinary words are to be given their ordinary meaning. Such a statute should not be so read as to add that which is not readily found therein or to read out what as a matter of ordinary English language is in it. In re Tax Appeal of Alex R. Masson, Inc., 21 Kan. App.2d 863, 868, 909 P.2d 673 (1995). K.S.A. 17-7636 requires that courts look to the laws of the jurisdiction where a limited liability company is organized to determine the liability of the company's members for unpaid wages. Therefore, the laws of the foreign jurisdiction include not only the foreign jurisdiction's limited liability company enabling laws but also other laws bearing on member liability. The members of a foreign liability company should not be surprised to find that they are liable in Kansas for the same conduct they are liable for in their state of organization. The district court correctly applied the Utah law in determining that Matjasich was liable for the unpaid wages of Capital Care's Kansas employees. KDHR's finding that members of a limited liability company are liable for unpaid wages under K.S.A. 44-323 was erroneous and is reversed. The district court's holding that members of a limited liability company are liable under Kansas law is likewise reversed. The district court's holding that Matjasich is liable for unpaid wages under Utah law, applicable to Matjasich pursuant to K.S.A. 17-7636, is affirmed. Affirmed in part and reversed in part.