It makes the property appear not worth filing a lawsuit. 

A defense attorney will not be able to get this information for purposes of a lawsuit. 

Ask an accounting advisor if theirs any benefits to one or the other, but I haven't found anything significant beyond if theres a lawsuit, the LLC's state laws can be involved. 

But they know they need adequate reserves to sustain them if/when there is a lawsuit or eviction to cover lost rent, repairs, etc.

They have several solid communities in this fund but the losers are dragging the whole fund down. well the folks that get into syndicating as GPs dont do it to make 100K  year they do it to get wealthy and make millions other wise why would anyone take on the risk of managing the money and then if it does not go right be a target and open to lawsuits and such that will then suck all the money you made out of your pocket. 

@Melissa Goff Let me know what you are looking for in terms of a mother-in-law suite.

There's open lawsuits coming from my market here in Indy.

Good question but, possible pending lawsuit aside (I am an attorney), what do we do now to get this permit?

I used to regularly get threatened with lawsuits.  

With over 3 million square feet of retail space soon to be available, the closure marks a significant shift in the retail landscape.The company, which rebranded in 2022 to distance itself from past legal controversies, including a 2015 class-action lawsuit over unsafe laminate flooring, ultimately could not overcome its financial hurdles.