It depends upon the circumstances and relationships between the parties. Recently, a limited liability company (LLC) needed financing for the purchase and development of unimproved residential lots. One of the individuals involved with the LLC was going to personally guarantee the debt of the LLC. The LLC hired an appraiser to provide appraisals for the use of the guarantor. Belen Loan Investors (BLI) agreed to finance the project. When the loan went into default, BLI sued the LLC, guarantor and appraiser. Belen Loan Investors, LLC v. Bradley, 650 Ariz. Adv. Rep. 8.
David Brnilovich is a member of the law firm of Jennings, Strouss & Salmon P.L.C. and can be reached at email@example.com or at 623.878.2222.