Davidson Was Barred from Being in the Nursing Home Business

Davidson was barred from being in the nursing home business in New Mexico. His partner Krystopowicz knew that, but he agreed to be the front man for a nursing home business. They would split the profits from ten nursing homes 50-50. Each home existed under its own LLC. Morrissey sued the LLC that owned the home where her mother had died, claiming wrongful death due to negligence. The jury awarded $4.8 million but the LLC was worth nothing, so Morrissey could not collect on the judgment. She sued Krystopowicz, the owner of the LLC, personally. The appeals court held that:

A) ​LLC owners are exempt from personal liability, so she could not sue Krystopowicz.
B) ​state law limited personal liability in such instances to $10,000 per incident, so that would be the maximum Morrissey could collect.
C) ​Davidson was improperly allowed to be involved in the business, so he would be held personally liable.
D) ​Krystopowicz could be held liable for criminal violation of state law but would not be personally liable to Morrissey.
E) ​none of the other choices are correct.