Operating Agreements, Contract Terms, Arbitration

Arbitration Result Can Be “Good”, “Bad” or “Ugly”

Gray Reed on 1/30/2025

The message in RSM Production Corporation v. Gaz du Cameroun SA: According to the federal Fifth Circuit, an arbitration tribunal’s construction of a contract and the arbitration rules governing the dispute “hold, however...more

Is an LLC Bound by its Own Operating Agreement?

Farrell Fritz, P.C. on 11/20/2024

Is a limited liability company a party to and bound by its own operating agreement? Many folks would say, “Yes, of course.” But it turns out the answer varies depending upon the law of the company’s state of...more

Does an Operating Agreement’s Arbitration Clause Apply to a “Purported” LLC Member?

Patton Sullivan Brodehl LLP on 5/23/2022

If an LLC’s Operating Agreement contains a sufficiently broad arbitration clause, most disputes raised by the LLC’s members relating to the LLC will be sent to arbitration (instead of the court system) for resolution. But...more

Illinois Federal Court Finds Futures Traders Are Estopped From Avoiding Operating Agreement’s Arbitration Clause Where They Sought...

Carlton Fields on 5/28/2020

A federal judge in the Northern District of Illinois ruled that Chicago derivatives firm DV Trading LLC can force three futures traders to arbitrate claims that it is withholding $1.6 million to defray a $5 million regulatory...more

The Curious Case of the Expelled LLC Member Bound by Operating Agreement He Never Signed

Farrell Fritz, P.C. on 2/4/2020

The case of Shapiro v Ettenson ranks as one of the more consequential ones in the realm of New York’s LLC jurisprudence....more

New York Court Compels Arbitration of Commercial Marijuana Dispute

Carlton Fields on 10/22/2019

The defendants moved to compel arbitration of a complex dispute concerning the parties’ investment in medical marijuana companies. The plaintiff claimed that the defendants breached a non-compete agreement and fiduciary...more

Dispute Resolution for Business Partners: The Arbitration Option—Know When to Hold ‘Em, When to Fold ‘Em, and When to Walk Away

Winstead PC on 5/13/2019

Entrepreneurs launching new companies today take on a significant gamble, because statistics show that roughly 30% of all new start-ups fail within two years, and only half survive for a full five years. Many businesses fail...more

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