New York Court Rejects
Judicial Dissolution of Successful Ongoing Business
In a recent decision from New
York, it rejected a minority member’s application for judicial dissolution of
an LLC that, objectively, was apparently quite successful. While the plaintiff
member’s claims for breach of the operating agreement with respect to the majority
owners’ acquisition of certain interest in the company in violation of a right
of first refusal and a request for an accounting survived, the business itself
will, at least for the time being, continue. Matter of Felzen v. PEI Mussle Kitchen, LLC, 2017 N.Y. Slip Op
31831(U), 2017 WL 3834841 (Sup. Ct. NY County Sept. 1, 2017).
Franklin C. McRoberts, writing
for the blog New York Business Divorce, has reviewed this decision in a
posting titled LLC’s Purpose Being
Achieved? Business Doing Fine? Good Luck Getting Judicial Dissolution (Oct.
2, 2017). HERE is a link to that
review.
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