This week’s New York Business Divorce highlights an important decision denying a dissolution petition brought by the 50% member of a realty-holding LLC on the ground that his own deliberate conduct in breach of the operating agreement created the conditions alleged as a basis for dissolution.
Continue Reading The Bad-Faith Petitioner Defense Makes Successful Debut in LLC Dissolution Case
50/50 shareholders disagree whether to liquidate the business or continue it. Is that enough for a deadlock dissolution petition? Find out in this week’s New York Business Divorce.
Continue Reading One 50% Shareholder Wants to Sell or Liquidate the Business. The Other Wants to Keep It Going. Is That Deadlock?
The bad faith defense has been recognized in close corporation dissolution cases involving both minority shareholder oppression and shareholder deadlock. How about LLC dissolution? This week’s New York Business Divorce looks at a recent Tennessee court’s decision upholding the defense in a dissolution case involving a Delaware LLC with two 50/50 members.
Continue Reading Bad Faith Defense Gets Boost in LLC Dissolution Case
The death of a shareholder amidst a deadlock dissolution proceeding turns the case upside down, as explained in a decision last month by Justice Vito M. DeStefano granting the petitioner’s request to discontinue the proceeding. Check it out in this week’s New York Business Divorce.
Continue Reading A Doozy of a Discontinuance in Deadlock Dissolution Case
Does the petitioner’s bad faith matter in a deadlock dissolution case when the relationship between the 50/50 owners has broken down irreconcilably? Justice Vito DeStefano recently tackled the question in Feinberg v. Silverberg in an important ruling that is likely to be cited in other cases. Read more in this week’s New York Business Divorce.
Continue Reading Is Bad Faith a Defense in Deadlock Dissolution Proceedings?