In the end, it wasn’t much of a fight.
The case of Huggins v Scott, decided last month by Justice W. Franc Perry of the Manhattan Supreme Court, illustrates anew the well-nigh insurmountable hurdle faced by a minority member seeking judicial dissolution of an economically viable LLC carrying on its business in conformity with its intended purpose.
The case tells the story of two longtime friends who became romantically involved and then became business partners before both relationships fizzled.
The Respondent is a female, registered amateur boxer and certified boxing coach who, in 2007, started a boxing club known as Women’s World of Boxing (WWB) to offer boxing workshops to teenage girls in under-served communities in Manhattan, Brooklyn, and the Bronx. Over the next decade, the unincorporated WWB had no permanent home and operated out of other boxing gyms.
Respondent organized WWB as a single-member New York limited liability company in 2014. In 2017, with financing help from Petitioner, who also personally co-guaranteed the lease, WWB constructed and opened its own boxing gym. Petitioner and Respondent entered into a written operating agreement under which they respectively held 40% and 60% membership interests. Continue Reading LLC Member’s Petition to Dissolve Boxing Club Dealt First Round KO