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Collecting on Judgments Against a Member's LLC Interest

A lawyer has limited remedies to collect on a judgment from a defendant who is unwilling to pay. If the defendant holds stock in a corporation, you can execute on the shares, take possession of them, and sell them. N.C. Gen. Stat. §1-324.3 . But if that ownership interest is in an LLC, a "charging...

Delaware Court Orders Auction of Philadelphia Newspaper Company

In Re Interstate General Media Holdings, LLC, C.A. No. 9221-VCP (Del. Ch. Apr. 25, 2014) [ an enhanced version of this opinion is available to lexis.com subscribers ]. Why This Decision Is Notable : The Delaware Court of Chancery determined that a private auction was the best method to obtain the...

Collateral Estoppel Sinks LLC Members' Claim

It might seem uncontroversial that the members of a limited liability company cannot follow with a personal lawsuit for injuries after their LLC litigates, and loses, claims based on the same issues. But it took the Business Court a while to get to that conclusion last week, in Lancaster v. Harold...

Eighty Five Thousand Reasons Not to Represent an LLC Without the Approval of a Majority of the Members (and one Other Thing)

Be sure that an LLC member has the authority to hire you before accepting the representation of the LLC in a suit by or against another LLC member. That authorization generally requires a majority of the interest of the members, at least under the default provisions of the LLC Act, which apply in the...

The NC Business Court Rules on Recovering Attorneys' Fees in a Derivative Action Against an LLC

In this week's opinion in Ekren v. K&E Real Estate Investments , 2014 NCBC 56 , Judge Bledsoe outlined how a derivative action plaintiff can recover attorneys' fees [ an enhanced version of this opinion is available to lexis.com subscribers ]. What Constitutes A 'Substantial Benefit"...