This week’s New York Business Divorce examines a noteworthy decision by Manhattan Commercial Division Justice Barry Ostrager in which he held that a member of a member-managed LLC owes fiduciary duties regardless whether the member actively participates in the LLC’s management.
Continue Reading Does an Inactive Member of a Member-Managed LLC Owe Fiduciary Duties?
Remember Gilbert v Weintraub, the case of the LLC member who resigned as manager and started a competing company? A new decision by Justice Timothy Driscoll sheds more light on the question whether a member-manager can shed fiduciary duty.
Continue Reading Take My Fiduciary Duty . . . Please!
A case decided last month by Justice Timothy Driscoll in Gilbert v Weintraub raises but doesn’t answer the tantalizing question whether a member of a multi-member, member-managed LLC with no operating agreement can shed fiduciary obligations and freely start a competing business by disavowing any management role in the prior business. This week’s New York Business Divorce has the story.
Continue Reading Can LLC Members Walk Away From Fiduciary Duties?