News & Analysis as of

Breach of Duty Fraud Limited Liability Company (LLC)

Fox Rothschild LLP

A Corporate “One Man Band” Might be a Lonely Road, but the Company is Not Always a Puppet

Fox Rothschild LLP on

Matthew Bagley worked for a claims adjustment firm in Louisiana as its claims manager for nearly three years before resigning to, allegedly, improperly compete against his former employer, M.D. Claims Group. In M.D. Claims...more

Patton Sullivan Brodehl LLP

“Equitable Buyout” as a Remedy for LLC Wrongdoing?

In the world of LLCs, buyouts — where one member sells his/her membership interest to another member or the LLC itself — are commonplace. Buyouts generally fall into one of two categories: contractual — where the...more

Farrell Fritz, P.C.

Winter Case Notes: Punitive Damages Awarded for Breach of Fiduciary Duty and Other Recent Decisions of Interest

Farrell Fritz, P.C. on

Notwithstanding that the pictured snow globe is the only snow I’ve seen in my neck of the woods this balmy winter, I’m pleased to present my annual Winter Case Notes collection of recent court decisions of interest....more

Farrell Fritz, P.C.

A Loan Is a Loan Is a Loan, Except When It’s Equity

Farrell Fritz, P.C. on

Disputes over capital accounts and equity percentages are frequent fodder for business divorce litigation — especially in LLCs without operating agreements. Exemplars previously treated on this blog include Chiu v Chiu, an...more

Patton Sullivan Brodehl LLP

Penal Code Remedies for LLC Misappropriation?

Can the sledgehammer remedies of California Penal Code section 496 — treble (triple) damages and attorney fees — apply for misappropriation of an LLC’s property? The California Supreme Court is set to answer that question...more

K&L Gates LLP

Delaware Court of Chancery Dispenses with Multiple Motions and Claims as Business Partners Take a “Kitchen Sink” Approach to...

K&L Gates LLP on

Stone & Paper Investors, LLC, et al., v. Richard Blanch et al., C.A. No. 2018-0394-PAF (Del. Ch. June 29, 2020) involved a barrage of claims and counterclaims among LLC members and managers, including, misappropriation of...more

Patton Sullivan Brodehl LLP

Courts Split Over Application of Penal Code to Claims of LLC Misappropriation

Almost one year ago, in Switzer v. Wood, California’s Fifth Appellate District held that an LLC manager or member participating in the theft of the LLC’s property could face liability under Penal Code section 496 — a statute...more

Farrell Fritz, P.C.

Death of Limited Partner Disarms Derivative Action

Farrell Fritz, P.C. on

I’ve yet to see him make a court appearance, and hope I never do, but the Grim Reaper sure has a knack for disrupting business divorce litigation involving LLCs and limited partnerships....more

Gray Reed

Oil Fraudster Conspires with His Own LLC

Gray Reed on

In January I commented on the partnership that wasn’t and the lawyer whose actions give the rest of us a bad name. That was Stephens et al. v. Three Finger Black Shale Partnership et al. The court of appeal has substituted...more

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