No Charging Order
for Subsequently Acquired Interest
In a recent decision from
Michigan, the court denied an application for a charging order that would
attached to interests in LLCs or limited partnerships subsequently acquired by
the judgment-debtor. Presidential Facility, LLC v. Debbas,
Case No. 09-12346 (Ed. Mich. April 12, 2013).
A judgment of $9.5 million was
entered against the defendants, including Campbell. The plaintiff then sought a charging order
against Campbell, seeking to “encumber any interest in limited partnerships or
limited liability companies in which Defendant Campbell has or may subsequently
acquire.” Reviewing the Indiana charging
order statute as set forth in its LLC Act, the court, while certainly agreeing
that a charging order could be placed against an interest currently held by a
judgment-debtor, did not find that it provided for a similar order against a
to-be-acquired interest. Rather, the
plaintiff was invited to apply for a charging order if and when Campbell
acquires an interest in an LLC or LP that he did not hold at the time this
order was requested.
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