39.9Duty ofLoyaltyAlly is a member and a managerof a manager-managed limited lia

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39.9Duty ofLoyaltyAlly is a member and a managerof a manager-managed limited liability company called Movers &You LLC a moving company. The main business of Movers & YouLLC is moving large corporations from old office space to newoffice space in other buildings. After Ally has been amember-manager of Movers & You LLC for several years shedecides to join her friend Lana and form another LLC called Lana& Me LLC. This new LLC provides moving services that movelarge corporations from old office space to new office space. Allybecomes a member-manager of Lana & Me LLC while retaining hermember-manager position at Movers & You LLC. Ally does notdisclose her new position at Lana & Me LLC to the othermembers or managers of Movers & You LLC. Several years laterthe other members of Movers & You LLC discover Allys otherownership and management position at Lana & Me LLC. Movers& You LLC sues Ally to recover damages for her working forLana & Me LLC. Is Ally liable?

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