Manager Appoints an Attorney to Represent the LLC in the Manager's Lawsuit Against the LLC
This discussion from Doug Batey (Stoll Rives in Seattle) demonstrates what can happen when the implications of an agreement are not fully thought out in application. One member of an LLC in effect conveyed control of the LLC to the other member for the period that the second member's loan to the LLC was outstanding. The second member, as a creditor, called the note, and then on behalf of the LLC retained counsel to negotiate a resolution of the issue. The first member's challenge to this was rejected.
Like Doug, I don't disagree with the ultimate outcome.
Also, I see the position of the attorney hired to be impossible.
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