Dispute Resolution

ARBITRATION

It is often appropriate to include arbitration clauses in the operating agreements of multi-member LLCs, and these clauses should often provide “delegation clauses” providing that all issues under the agreement, including even issues about the arbitration clauses themselves, must be addressed by the arbitrator. The link below addresses a 10th circuit case on the issue […]

ARBITRATION

Arbitration provisions are important in the operating agreements of many multi-member LLCs.  In my experience, trial lawyers usually don’t like these provisions.  The article under the link below, entitled Businesses and Law Firms: What Not to Believe about Arbitration, provides an interesting discussion of what the authors believe and what they think is untrue about […]

THE FEDERAL ARBITRATION ACT AND LLCS

Many multi-member LLC  operating agreements contain arbitration provisions that are rooted in the Federal Arbitration Act (the “FAA”).  The decision summarized in the post under the link below is by the Nebraska Supreme Court, but it is relevant in all states.  In essence, it holds that the FAA applies even if the dispute in issue […]

ARBITRATION

Arbitration provisions are indispensable in most multi-member LLC operating agreements.  The new blog post under the link below addresses the issue of which is better in an arbitration:  a single arbitrator or a three-arbitrator panel.  For most multi-member LLCs, a single arbitrator is the answer, but we should all be aware of arguments to the […]

POSTS ABOUT LITIGATION VS. ARBITRATION

Every LLC operating agreement should contain an appropriate dispute resolution provision.  A key issue in planning and drafting these provisions is whether the client will be better served by arbitration or by litigation.  The link below is to a blog post about cost issues in making the above choice.  The post provides a link to […]

“TIE-BREAKER” CASE

Tie-breaker provisions in LLC operating agreements can serve many valuable functions for your LLC formation clients—and can also, for some LLC members, have shocking results, as shown by Peter Mahler in his discussion of a recent New York case under the link below.  The case involves a New York corporation, but it is equally applicable […]

NEW ARTICLE ABOUT DIRECT VS. DERIVATIVE SUITS BY LLC MEMBERS

In planning and drafting LLC operating agreements, lawyers have to give major attention to dispute resolution issues and provisions.  This means, among other things, that they have to understand in some detail the relevant LLC law concerning direct vs. derivation litigation by LLC members.   A brief but excellent new article about this topic from the […]

AAA SEMINAR ON ARBITRATION

Dispute resolution provisions are key in many operating agreements in multi-member LLCs and sometimes even in single-member LLCs.  The American Arbitration Association is hosting a webinar on arbitration provisions.  I intend to attend it.  Should you?

NEW ARTICLE ON LLCS AND DISPUTE RESOLUTION

The dispute resolution provisions in LLC operating agreements are among the most important provisions in those agreements.  Below are the title, the table of contents and the first paragraph of a new law journal article about LLCs and the private ordering of dispute resolution.  When I read the article, I’ll post a message in this […]

DELAWARE CASE RE: FORUM SELECTION

I’ve been drafting an operating agreement under the Delaware Limited Liability Company Act for the members of a two-member LLC in which one member has cash and business know-how and the other has less cash but good technical know-how.  One member will work for the LLC in New York, the other in Massachusetts.  I decided […]