1545 Ocean Avenue LLC was formed for a real estate development. It was owned 50-50 by two...

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1545 Ocean Avenue LLC was formed for a real estate development. It was owned 50-50 by two other companies, Ocean Suffolk and Crown Royal, which each had a membership certificate in 1545. The operating agreement contained no provisions relating to dissolution of the LLC. Two managers were appointed; Crown Royal appointed King and Ocean Suffolk appointed Van Houten to operate 1545. As work progressed, King and Van Houten argued over the project. King announced that Crown Royal wanted to pull out of 1545 and sued for work to stop and the LLC to be dissolved. The trial court granted those requests. Van Houten and Ocean Suffolk appealed.

1. The unhappy member, King (Crown Royal), cannot get out of the LLC this way. What options exist?
2. What should the members have done differently when they set up 1545 LLC?

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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