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 dissolution when the managers of the LLC are deadlocked
"in the management of the affairs of the limited liability company."
The deadlock, which had existed since June of 2005,
concerned how the profits from contingent fee engagements, concluded
after several partners withdrew from the PLLC, should be divided among the
partners. Carrying out the directive of the Court of Appeals, Judge Jolly
last week in Mitchell
v. Brewer, 2013 NCBC 14 resolved the issue of how those profits should be
These former partners have been at war for seven years
over the division of these fees. I've written several times about the
case, including in May
2008, and March
In this latest round in their war, the former partners
(the Plaintiffs) and the remaining Partners (the Defendants, who did all the
work after the dissolution to resolve the outstanding contingent fee matters)
had different approaches as to how the fees should be allocated among them.
Read this article in
its entirety on North
Carolina Business Litigation Report, a blog for lawyers focusing on issues
of North Carolina business law and the day-to-day practice of business
litigation in North Carolina courts.
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