More On the Location of LLC Interests and Priority of Charging Orders

More On the Location of LLC Interests and Priority of Charging Orders

      Previously, I reviewed a decision of the Colorado Court of Appeals addressing the priority of various charging orders against the same interest in the LLC as well as the capacity of a court to issue a charging order with respect to the interest in a foreign LLC. That case was McClure v. JP Morgan Chase Bank, NA., No. 14CA1774 (Co. Ct. App. August 13, 2015). HERE IS THE LINK to my review of that decision.

      On May 31, 2016, the Colorado’s Supreme Court granted a petition for a writ of certiorari in this case (available at 2016 WL 3180645), agreeing to address the following questions:

(1) Whether the membership interests of a non-Colorado citizen in a Colorado LLC are located in the citizen’s home state or in Colorado for purposes of determining the enforceability of charging orders and lien enforcement.

(2) Whether the court of appeals erred in holding that the priority of charging orders issued against the membership interests of a non-Colorado citizen in a Colorado LLC is determined by first in time service of either charging orders issued by Colorado courts or foreign charging orders that have been domesticated in Colorado courts.