News & Analysis as of

Article III Limited Liability Company (LLC)

Farrell Fritz, P.C.

Surrogate’s Court Jurisdiction to Resolve Close Business Owner Disputes

Farrell Fritz, P.C. on

Do New York’s Surrogate’s Courts have jurisdiction to compel an accounting related to a non-party limited liability company in which the decedent’s estate has only a minority interest? ...more

McGlinchey Stafford

When is a Class Action Superior? - McGlinchey Commercial Law Bulletin - March 31, 2023

McGlinchey Stafford on

Substantial Compliance with Contract- American Bus. Investments, LLC v. Shaeena & Allos, LLC, 6th Dist. Lucas, 2023-Ohio-739. In this appeal, the Sixth Appellate District affirmed the trial court’s decision to grant...more

Jackson Walker

When Filing Suit in Federal Court, Don’t Forget the Key to the Courtroom Door

Jackson Walker on

Formalism matters in federal court. One cannot obtain access to the courtroom without presenting the jurisdictional key to the courtroom door. A fundamental principle of subject matter jurisdiction is that parties asserting...more

Farrell Fritz, P.C.

Top Ten Business Divorce Cases of 2018

Farrell Fritz, P.C. on

I’m very pleased to present my 11th annual list of this past year’s ten most significant business divorce cases. This year’s list includes four important appellate decisions, including one likely to stand as a landmark...more

Farrell Fritz, P.C.

Outlawing of LLC’s Short-Term Rental Business Brings Long-Term Litigation

Farrell Fritz, P.C. on

After two years, 300+ docket entries, and 12 motions, a lawsuit among members of a Delaware LLC that owned a 5-story apartment building on Manhattan’s Upper East Side (the “UES Building”) acquired to provide short-term...more

Farrell Fritz, P.C.

Is A Schedule K-1 By Itself Enough To Prove LLC Membership?

Farrell Fritz, P.C. on

Let me say up front, I don’t claim to know the answer to the question posed in this post’s title, or pretend there’s a simple yes-or-no answer....more

Farrell Fritz, P.C.

Court Grants 50% LLC Member Derivative Right to Defend Action Brought by Other 50% Member’s Solely Owned Company

Farrell Fritz, P.C. on

You know there’s something unusual going on in a case involving a dispute between co-members of an LLC — a form of business entity that didn’t exist in New York until 1994 — when the key legal precedents cited in the parties’...more

Allen Matkins

The Memberless LLC And Diversity

Allen Matkins on

When faced with someone who is blowing things out of proportion, one response might be "Don't make a federal case out of this!" Sometimes, it may not even be possible to make a federal case. The reason is that federal...more

Farrell Fritz, P.C.

Lack of Standing Is Fatal To Challenge

Farrell Fritz, P.C. on

Standing is a threshold issue in challenges to administrative decisions. Prior blog posts have dealt with standing in cases involving challenges to local land use and zoning decisions. ...more

Farrell Fritz, P.C.

Operating Agreement Dooms Derivative Claims by Deceased LLC Member’s Estate

Farrell Fritz, P.C. on

In business divorce litigation, petitioners / plaintiffs often want to start the case with a bang. A common tactic is to file a petition / complaint simultaneously with an injunction motion. Often there is a real need for an...more

Patterson Belknap Webb & Tyler LLP

Second Department Affirms Commercial Division Decisions Leaving Withdrawing LLC Members Without Compensation for Their Membership...

In Matter of Jacobs v. Cartalemi, No. 2016-05041, 2017 BL 435890 (2d Dep’t Dec. 6, 2017) (“Jacobs I”), a unanimous Appellate Division, Second Department panel affirmed an order by Westchester County Commercial Division...more

Farrell Fritz, P.C.

Divorcing Husband Not Smiling Over Court’s Rejection of Ownership Interest in Wife’s Dental Practice

Farrell Fritz, P.C. on

The self-proclaimed entrepreneur and guiding force behind his soon-to-be ex-wife’s highly successful, multi-office pediatric dental practice known as Kiddsmiles is not smiling after the court in Savel v Savel, Short Form...more

Farrell Fritz, P.C.

Assignment of LLC Interest Defeats Standing Despite Alleged Lack of Consideration

Farrell Fritz, P.C. on

The rules of “standing” in business divorce litigation generally require that the plaintiff have an ownership interest in the business entity at the time of the alleged wrongful conduct and, for derivative claims brought on...more

Kramer Levin Naftalis & Frankel LLP

Debt Dialogue: April 2017 - Creditor Barred from Bringing a Derivative Action Against an Insolvent Delaware Limited Liability...

In a recent ruling, Trusa v. Nepo (Del. Ch. April 13, 2017), consistent with prior case law, Vice Chancellor Montgomery-Reeves of the Delaware Chancery Court held that a creditor cannot bring a derivative action against a...more

Farrell Fritz, P.C.

Beware Diversity Trap in Federal Court Business Divorce Cases Involving LLCs

Farrell Fritz, P.C. on

I can count on one hand the number of federal court cases I’ve featured on this blog since I started it almost 10 years ago — and that’s no coincidence....more

Farrell Fritz, P.C.

Operating Agreement Trumps Falsified Liquor License Application In Dispute Over LLC Membership

Farrell Fritz, P.C. on

Oh, the things that can happen when the LLC members identified in the company’s operating agreement differ from those identified in official documents submitted to government agencies....more

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