Duff

Delaware Case Provides Drafting Lesson for “Phantom” Income Provision in Buy-Out Agreement

By Peter A. Mahler on January 13, 2013

Posted in Buyout, Delaware, LLCs, Phantom Income, Uncategorized

A recent Delaware Chancery Court decision teaches an important lesson for drafters of buy-out agreements involving pass-through entities and taxes on “phantom” income allocated to a former owner. Learn more in this week’s New York Business Divorce.
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The Importance of Defining Capital Contributions in the LLC Agreement

By Peter A. Mahler on March 5, 2012

Posted in Capital Call

Litigation over capital contributions by LLC members once again takes center stage in this week’s New York Business Divorce. The featured decision by Justice Emily Pines in Duff v. Curto highlights the risks taken when business partners fail to define capital obligations in the operating agreement.
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