Delaware Court of Chancery Orders Dissolution of LLC of Famous Handyman, Based on "Not Reasonably Practicable" Standard

Vila v. BVWebTies LLC, C.A. No. 4308-VCS (Del. Ch. Oct. 1, 2010), read opinion here . Brief Overview This opinion adds needed depth to the case law on Section 18-802 of the Delaware LLC Act which allows a member of an LLC to seek dissolution when it is not "reasonably practicable"...

Delaware Court of Chancery Orders Dissolution of LLC of Famous Handyman, Based on "Not Reasonably Practicable" Standard

Vila v. BVWebTies LLC, C.A. No. 4308-VCS (Del. Ch. Oct. 1, 2010), read opinion here . Brief Overview This opinion adds needed depth to the case law on Section 18-802 of the Delaware LLC Act which allows a member of an LLC to seek dissolution when it is not "reasonably practicable" to continue...

Dissolving a Partnership for Frustration of Purpose

Under Virginia law, a partner can apply for dissolution of a partnership under Virginia Code § 50-73.117(5) upon grounds that: (a) The economic purpose of the partnership is likely to be unreasonably frustrated; (b) Another partner has engaged in conduct relating to the partnership business ...

Chancery Dismisses Summary Dissolution Case in Favor of Two Foreign Suits

McElroy v. Schornstein, C.A. No. 7233-CS (Del. Ch. June 20, 2012). Issue Addressed : Whether summary proceedings for dissolution under 8 Del. C . § 273 should be permitted to proceed as an exception to the first-filed rule under the McWane doctrine, in light of related actions outside of Delaware...

Chancery Addresses Two Methods for Dissolving Delaware Corporations; No Receiver Appointed 10 Years after Dissolution and No Claims Allowed after 10 Years

In the Matter of Krafft-Murphy Company, Inc. , C.A. No. 6049-VCP (Del. Ch. Feb. 4, 2013). Issue Addressed This case addresses a question of first impression in Delaware: Whether a receiver should be appointed more than 10-years after the dissolution of a Delaware corporation when the dissolved...

When Law Firms Dissolve: Dividing Up The Proceeds From Contingent Fee Cases

The Court of Appeals in February 2011 ordered Judge Jolly to dissolve Mitchell, Brewer, Richardson, Adams, Burge & Boughman, a law firm organized as a member-managed professional limited liability company. The dissolution was ordered per N.C. Gen. Stat. § 57C-6-02 , which authorizes judicial...

Management Liability Insurance for Law Firms and the Dewey & LeBoeuf Bankruptcy

The collapse of the venerable Dewey & LeBoeuf law firm is a cautionary tale from which observers have drawn many lessons, including cautions about the perils associated with large law firm mergers and the challenges associated with various forms of law firm partner compensation. The firm's failure...