Dissolution is a common issue in LLC litigation (and probably in LLC arbitration). In the new blog post under the link below, Peter Mahler provides a brief but excellent discussion of minority bad faith in minority claims for dissolution. Here’s the link: http://www.nybusinessdivorce.com/2016/09/articles/dissolution-defenses/bad-faith-defense-gets-boost-llc-dissolution-case/#more-17654
LLCs are often the best entities through which to conduct joint ventures. These ventures often end in acrimony. The blog under the link below addresses a joint venture dispute under the Delaware corporation act, but it also has implications for LLC-based joint ventures. Here’s the link: http://delawarechancery.foxrothschild.com/dissolution-2/section-273-dissolution-inability-to-agree-upon-the-desirability-of-discontinuing-the-joint-venture/?utm_source=Fox+Rothschild+-+Delaware+Court+of+Chancery+Practice+Blog&utm_campaign=b68e55ddff-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_86821ff155-b68e55ddff-70733165
The excellent new blog post under the link below deals mainly with break-ups of state-law business corporations taxable as C or S corporations, but some of the concepts in the post are also relevant to the break-up of multi-member LLCs taxable as partnerships. Here’s the link: http://www.taxlawforchb.com/2015/10/breaking-up-is-hard-to-do-now-i-know/?utm_source=Tax+Law+for+the+Closely-Held+Business&utm_campaign=9c6efc2115-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_4d5d267118-9c6efc2115-73367009
For LLC junkies: Here is a link to a good blog post about a really weird Delaware LLC dissolution: http://www.delawarelitigation.com/2015/06/articles/chancery-court-updates/dissolution-of-profitable-llc-granted-despite-agreement-barring-voluntary-dissolution/.
Here is a link to yet another comment, this one by Peter Mahler, on the rather astounding Delaware Court of Chancery Carlisle equitable dissolution case: http://www.nybusinessdivorce.com/2015/05/articles/llcs/delaware-chancery-court-endorses-equitable-dissolution-of-llc/. Personally, I think the facts in Carlisle were so unusual that it is unlikely that the case will have a broad impact. (Famous last words?)
Here is another superb post by Doug Batey in his “LLC Monitor” website concerning a recent Kentucky case involving difficult issues about the effect of LLC dissolutions and the liability shield of members of single-member LLCs when their LLCs are administratively dissolved. The key points in the post, as I read it, include the following: […]
This recent article in the ABA’s Business Law Today addresses the impact of the Delaware Court of Chancery Huatuco decision on the above waivers (which I’ve mentioned here in a previous post). The underlying issue is this: When should an operating agreement provide for these waivers? The answer: (i) Whenever some or all of the […]
Among the issues most frequently overlooked by lawyers drafting LLC operating agreements are those covering the issues that can arise for an LLC, its members, its managers and third parties when the LLC is dissolved, wound up and liquidated and its existence as an entity is formally terminated by a filing with the Secretary of […]