News & Analysis as of

Operating Agreements Limited Liability Company (LLC) Arbitration

Davidoff Hutcher & Citron LLP

Resolving Partnership Disputes in Restaurants: Key Legal Considerations

Partnership disputes are common in the restaurant industry, where high-stress environments, financial pressures, and differing business visions can create tension between partners. If not handled properly, these disputes can...more

Farrell Fritz, P.C.

Is an LLC Bound by its Own Operating Agreement?

Farrell Fritz, P.C. on

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

Stradling Yocca Carlson & Rauth

California Business Divorce Blog: Your LLC Can Run, But It Probably Cannot Hide From California Jurisdiction

In some cases, owners of an LLC provide in their Operating Agreements that any disputes involving the LLC or arising out of the Operating Agreement, including a business divorce, must be litigated in a private arbitration...more

Patton Sullivan Brodehl LLP

Receiver for LLC Can be Bound by Operating Agreement’s Arbitration Provisions

Courts often appoint receivers to manage the affairs of LLCs when the internal management is conflicted or broken. General equity receivers (as opposed to more limited receiverships such as deed of trust receivers) enjoy...more

Patton Sullivan Brodehl LLP

LLC Operating Agreements: Indemnity, Arbitration, and Equity

LLC operating agreements frequently provide for indemnity to the LLC’s manager. This is consistent with the statutory default rule embodied by California Corporations Code section 17704.08(a), which provides for indemnity...more

Patton Sullivan Brodehl LLP

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

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

Farrell Fritz, P.C.

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

Farrell Fritz, P.C. on

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

Morris James LLP

Chancery Court Offers Guidance on Arbitration Provision Carve-Outs

Morris James LLP on

The Innovation Institute, LLC v. St. Joseph Health Source, Inc., C.A. No. 2019-0156 JRS (Del. Ch. Aug. 28, 2019). Despite the plaintiff’s request for specific performance and an arbitration provision that carved-out...more

Carlton Fields

Tenth Circuit Upholds Confirmation Of Arbitral Award In LLC Dissolution Dispute

Carlton Fields on

The Tenth Circuit recently affirmed a district court’s confirmation of an arbitration award in a dispute regarding the dissolution of Knowledge Strategy Solutions, LLC (“KSS”). KSS was a partnership between the professional...more

Farrell Fritz, P.C.

Business Divorce Nation: Five States, Five Cases

Farrell Fritz, P.C. on

It’s true that the statutory and common-law rules at play in business divorce cases can vary widely from state to state. But it’s also true that court decisions in one state can influence courts in other states, and can...more

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