Analyze the issue based on the following criteria:
Water, Waste, & Land, Inc., is a land development and engineering company doing business under the name “ Westec.” Donald Lanham and Larry Clark were managers and also members of Preferred Income Investors ( PII), LLC. PII is a limited lia-bility company. Clark contacted Westec about the possibility of hiring Westec to perform engineering work in connection with a development project. In the course of preliminary discussions, Clark gave his business card to representatives of Westec. The business card included Lanham’s address, which was also the address listed as PII’s principal office and place of business. While PII’s name was not on the business card, the letters “ PII” appeared above the address on the card. However, there was no indication as to what the acronym meant or that PII was a limited liability company. Although Westec never received a signed contract, it did receive ver-bal authorization from Clark to begin work. Westec completed the engineering work and sent a bill for $ 9,183.40 to Lanham. No payments were made on the bill. Westec filed a claim against Clark and Lanham individually as well as against PII. At trial, PII admitted liability for the amount claimed by Westec. Accordingly, the court dismissed Clark from the suit, concluding that he could not be held personally liable, and entered judgment in the amount of $ 9,183 against Lanham and PII. Lanham appealed.
On appeal, was Lanham found liable for the amount due to Westec? Why? [ Water, Waste, & Land v. Lanham, 955 P. 2d 997 ( 1998).]
