Category: Member Buy-Outs

LIABILITY OF FORMER MEMBERS TO BUY-OUT THIRD MEMBER’S INTEREST

Under the link below is a scary recent PLLC ruling by a NY court, as discussed by Peter Mahler of the FarrellFritz law firm in his latest post.  Peter summarizes his post as follows:

This week’s New York Business Divorce examines a noteworthy decision by Justice Richard Platkin involving the break-up of a law firm organized as a professional services limited liability company, in which the court addressed the potential liability of two members to buy out a third member’s interest after they withdrew from the firm.

Here is the link:

https://www.nybusinessdivorce.com/2020/03/articles/professionalservicellcs/forced-to-buy-out-law-partners-interest-in-defunct-firm-years-after-withdrawing-it-can-happen/

BUY-OUT OF MEMBER ELEVEN YEARS AFTER MEMBER’S DEATH

Peter Mahler’s latest post—as usual, an excellent one—addresses a very recent New York appellate decision concerning a potential buy-out of a deceased member of a real estate holding company LLC—11 years after the member’s death!   The facts are weird but the case nevertheless holds many lessons for LLC lawyers drafting buy-sell provisions for deceased LLC members.

Here’s the link:

https://www.nybusinessdivorce.com/2019/11/articles/operating-agreement/llc-survives-members-death-dissolution-petition-doesnt/