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Operating Agreements

Farrell Fritz, P.C.

For Close Business Owners, the Toothless Notice of Pendency Remedy Unexpectedly Gets Some Bite

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It’s one of those dismaying rules of law many business owners don’t learn until they litigate. Contrary to popular belief, a business owner lacks a direct ownership interest or property right in the company’s underlying...more

Gray Reed

No Invoice, No Breach Under a COPAS Accounting Procedure

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Last year we reported on Steelhead Midstream Partners, LLC v. CL III Funding Holding Company, LLC, where the Texas Supreme Court held that a pipeline owner’s breach-of-contract claim was not an impermissible collateral attack...more

Farrell Fritz, P.C.

Can an Equitable Accounting Find the Missing Cash?

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Allegations of missing cash are a familiar feature of business divorce litigation, particularly in restaurants and other cash-heavy businesses.  When the books are incomplete and the money never made it into the bank,...more

Kaufman & Canoles

Court of Appeals of Virginia Affirms Circuit Court Order Declaring a Deed of Trust Void

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Yesterday, in Loan Funder LLC, Series 715 v. Farm Life, LLC, Record No. 0784-24-4 (Ct. App. Va. Jan. 20, 2026), the Court of Appeals of Virginia issued a significant decision affirming an order entered by the Circuit Court of...more

Farrell Fritz, P.C.

One Very Messy LLC Freeze-Out Merger

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Loyal readers of this blog may recall the powerful victory my firm’s client won in 2021 in Farro v Schochet, where the Appellate Division, Second Department broke new ground by holding inapplicable to LLC freeze-out mergers...more

Davidoff Hutcher & Citron LLP

Who’s Really in Charge? Governance, Control, and Voting Rules for Restaurant Owners

Many restaurant disputes boil down to one question: “Who gets to decide?” Is it the chef? The money partner? The majority owner? The answer should be in your governance structure — not in the middle of a heated argument....more

Farrell Fritz, P.C.

Top 10 Business Divorce Cases of 2025

Farrell Fritz, P.C. on

Welcome to our 18th annual edition of the Top 10 business divorce cases featured on this blog over the past year. This year’s selections include a split decision by the New York Court of Appeals in a fascinating case...more

Farrell Fritz, P.C.

Mere Assignment of an LLC Membership Interest Does Not Make You a Member

Farrell Fritz, P.C. on

At New York Business Divorce, schadenfreude is our stock-in-trade. Legal missteps, misconceived strategies, and big losses provide the inspiration we need to keep informing and entertaining ourselves and our audience...more

Davidoff Hutcher & Citron LLP

The Restaurant Operating Agreement: 10 Clauses That Prevent Partner Disasters

An operating agreement (for an LLC) or shareholders’ agreement (for a corporation) is where you and your partners decide how the relationship really works. Without it, New York’s default rules step in — and those rules...more

Cranfill Sumner LLP

Business Court Update: Business Court Allows LLC Fiduciary Duty Waiver

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On November 25, 2025, the North Carolina Business Court issued an opinion in Estevez v. C&S Commerce, LLC, 2025 NCBC 73, and reaffirmed the enforceability of fiduciary duty waivers in LLC operating agreements....more

Bricker Graydon Wyatt LLP

Ring in 2026 Right: Your Guide to Year-End Legal Planning for Your Business

Year-end is traditionally a time for looking back and planning ahead...in life, as well as in the course of your business. Included here are some things you will want to consider at the end of 2025, going into 2026....more

Offit Kurman

Business Legal Maintenance: What to Review Before January

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As the year comes to a close and businesses prepare to wrap up 2025, there’s one critical task that should not be overlooked — a comprehensive legal check-up. Just as we schedule annual physicals to safeguard our personal...more

Davidoff Hutcher & Citron LLP

How to Split the Pie: Equity, “Sweat” Ownership, and Investors in Restaurant Deals

Restaurant deals almost always involve some mix of: A chef or operator contributing sweat and expertise, One or more money partners, and Maybe a landlord, advisor, or brand partner in the background....more

Hendershot Cowart P.C.

Why Your Texas LLC Operating Agreement Is Your Best Defense Against Costly Litigation Between Members

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In Texas, your operating agreement (also called a "Company Agreement") is the defining document that governs how your LLC operates. Unlike corporations, which must follow rigid state-imposed structures, LLC members can agree...more

McAfee & Taft

Corporate governance is the foundation for success

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In today’s complex business world, it is imperative that companies understand the importance of corporate governance. Today, more than ever, companies are facing increased scrutiny and rising expectations from their...more

Freiberger Haber LLP

Assignment of Membership Interests . . . Always Check the Operating Agreement and The LLC Law

Freiberger Haber LLP on

In Kober v. Nestampower, 2025 N.Y. Slip Op. 06609 (2d Dept. Nov. 26, 2025), the Appellate Division, Second Department, decided an appeal involving disputes over membership interests in a limited liability company. After a...more

Robson & Robson, P.C.

This Ain’t Football: Pa. Superior Court Lets A Receiver Call The Plays

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I love endurance sports, and I work out incessantly. But I don’t watch sports or know much about them. Before hanging out with a group other men, I ask my wife to give me a summary of which local sports teams have recently...more

Davidoff Hutcher & Citron LLP

Buyout Options for Divorcing Restaurant Owners

Divorce can be especially complicated for restaurant owners, as it often involves not just dividing personal assets but also making tough decisions about the future of the business....more

Bradley Arant Boult Cummings LLP

Joint Venture Best Practices: A Strategic Guide for Business Leaders – Part 1, Treat Your JV as Business Strategy First, Legal...

Joint ventures remain one of the most powerful tools in the modern business arsenal. In this five-part series, we will explore how, in a climate of geopolitical uncertainty and economic volatility, joint ventures have proven...more

Lathrop GPM

Michigan Court of Appeals Enforces Arbitration Provision Among Conflicting Dispute Resolution Provisions

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A state appellate court in Michigan affirmed in part and reversed in part a trial court’s decision compelling arbitration and denying a motion to rescind two contracts related to a failed effort to establish a franchise...more

Davidoff Hutcher & Citron LLP

How to Handle a Business Divorce Between Restaurant Partners

Just like personal relationships, business partnerships can sometimes come to an end. For restaurant owners, parting ways with a business partner—often referred to as a business divorce—can be an emotional and financially...more

Cranfill Sumner LLP

North Carolina Business Court Weighs in on Business Breakups and Fiduciary Claims

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The North Carolina Business Court recently issued an opinion in Carolina Medical Partners, PLLC v. Shah. The case involves a flurry of litigation arising out of the breakup of a medical practice and allegations of impropriety...more

Bricker Graydon Wyatt LLP

Bylaws from the Crypt: Why Outdated Governance Could Haunt Your Business

In the spirit of Halloween, it’s time to ask: Are your company governance documents a ticking time bomb buried beneath the boardroom floor? When was the last time you updated your bylaws or governance documents?...more

Patton Sullivan Brodehl LLP

A Poke Bowl Full of Breached LLC Duties

LLC litigation involves many complex issues, and it’s not always easy to allege a claim properly. Some cases never get out of the starting gate, with the court sustaining a demurrer to the complaint and dismissing the case...more

Farrell Fritz, P.C.

How Easily Can an Operating Agreement Supplant the Default Rule for LLC Manager Removal? Pretty Easily.

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Talk about a roller coaster ride. Years ago, we wrote about Lengyel-Fushimi v Bellis, a pitched legal battle for control of a Brooklyn brewpub, Kings County Brewers Collective, LLC (“KCBC”), yielding not one, not two,...more

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