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Common-Law and Equitable LLC Dissolution: Going, Going, . . . | Farrell Fritz, P.C.

Common-Law and Equitable LLC Dissolution: Going, Going, . . . | Farrell Fritz, P.C.
jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.

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The Money's There But Out of Reach for the Minority LLC Member | Farrell Fritz, P.C.

The Money's There But Out of Reach for the Minority LLC Member | Farrell Fritz, P.C.
jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.

New York , United States , Simonv Moskowitz , Daniel Kleinberger , Manerev Collins , Connecticut Court , First Department , Appellate Division Decision , Liability Company Law , Lower Court Dismissal Of The Complaint , Liability Company , Or Not From Close Corporation History , Appellate Division , Business Corporation Law , Partnership Law , Law Section , Revised Uniform , Manhattan Based Appellate Division , Professor Kleinberger , Business Corporation , Lower Court , Limited Liability Company Law , Unsurprising Lesson , Professor Douglas Moll , Limited Liability Company , From Close Corporation ,

Second Department Limits Plaintiff to Appraisal Remedy Under New York LLC Law After a Freeze-out Merger | Patterson Belknap Webb & Tyler LLP

In
Farro v. Schochet, the Second Department recently held that §1002 of the NY LLC Law restricted a dissenting member’s remedy to an appraisal for the fair value of his interest in the business after a freeze-out merger.[1] Thus, the Court reduced the legal remedies for a minority LLC member that lacked protections in the operating agreement against the merger.
Background on Freeze-out Mergers and Appraisal Remedy
A freeze-out merger typically involves controlling member(s) forcing minority member(s) out of a business by (1) creating a new business where the minority member(s) do not have a stake and then (2) using their controlling stake in the original business to merge it into the new business to freeze-out the minority member(s). ....

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An Extreme Case of Petitioner's Remorse | Farrell Fritz, P.C.

“[A]ll assets . . . [shall] be sold at auction at the earliest commercially reasonable date”;
“[F]ollowing the sale . . . further proceedings and claims remain to determine each member’s contribution and membership interests”; and
“[I]n light of the above-referenced additional proceedings, all funds from the sale . . . shall be held in escrow and release and distributed only pursuant to a settlement agreement executed by both parties . . .”
The Post-Stipulation Litigation
After signing the stipulation, Yehle refused to sign documents permitting the auctioneer to proceed with the asset sale, claiming that Rich’s refusal to respond to his demands for discovery concerning Rich’s capital contributions relieved Yehle of compliance with the stipulation. Rich countered by asking the court to ....

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