"RECENT CASES INVOLVING LLCS"

[Dan Schwartz]

Here is a report out of Baylor University (yes, it's almost 10 years old) that has nearly 100 pages of court decisions regarding various aspects of LLC law. Remember that LLC law varies by state, but after endless discussions of "to LLC or not," or "piercing the corporate veil," it seems like a primary source would be helpful here. http://www.baylor.edu/content/services/document.php/117967.pdf Table of Contents LimitedLiabilityCompanies ............................................................ 3 A. DiversityJurisdiction........................................................... 3 B. PersonalJurisdictionOverMembersandManagers ................................... 3 C. ServiceofProcess ............................................................. 4 D. Venue....................................................................... 4 E. Standing/AuthoritytoSue ....................................................... 5 F. ProSeRepresentation .......................................................... 7 G. DerivativeSuits ............................................................... 7 H. NecessaryParties............................................................. 11 I. ScopeofDiscovery ........................................................... 11 J. Arbitration .................................................................. 11 K. NatureofLLC ............................................................... 13 L. Pre-FormationTransactions..................................................... 14 M. FormationofLLC/FailuretoFormLLC ........................................... 15 N. FraudulentInducementtoFormLLC ............................................. 15 O. Limited Liability of LLC Members and Managers/Personal Liability Under Agency or Other Principles................................................................... 16 P. LLCVeilPiercing ............................................................ 21 Q. AuthorityofMembersandManagers ............................................. 29 R. AdmissionofMembers ........................................................ 31 S. LLCProperty/InterestofMember ................................................ 34 T. FiduciaryDutiesofMembersandManagers ........................................ 35 U. InspectionandAccesstoInformation ............................................. 46 V. InterpretationofOperatingAgreement ............................................ 47 W. TransferofInterest/Buy-OutofMember ........................................... 59 X. CapitalContributionsandContributionObligations .................................. 61 Y. CompensationofMember ...................................................... 61 Z. SeriesLLC.................................................................. 61 AA. ImproperDistributions......................................................... 61 BB. Withdrawal,Expulsion,orTerminationofMember .................................. 62 CC. DissolutionandWindingUp .................................................... 67 DD. JudicialorAdministrativeDissolution............................................. 70 EE. ProfessionalLLCs ............................................................ 72 FF. ForeignLLC-FailuretoQualifytoDoBusiness .................................... 74 GG. ForeignLLCs-ConstitutionalityofFeeorTax...................................... 75 HH. ForeignLLC–GoverningLaw .................................................. 75 II. ChargingOrder .............................................................. 76 JJ. DivorceofMember ........................................................... 77 KK. Receivership ................................................................ 78 LL. Bankruptcy.................................................................. 79 MM. FraudulentTransfer ........................................................... 84 NN. Creditor’sRights ............................................................. 85 OO. SecuredTransactions.......................................................... 85 PP. SecuritiesLaws .............................................................. 86 QQ. Worker’sCompensation ....................................................... 87 RR. StateandLocalTaxes ......................................................... 87 SS. CommonLaw/StatutoryIndemnification ........................................... 88 TT. UnfairBusinessPracticesStatutes ................................................ 88 UU. Insurance ................................................................... 88 VV. StatuteofFrauds ............................................................. 89 WW. TortiousInterference .......................................................... 89 XX. SuccessorLiability............................................................ 89 YY. Conversion,Merger,Reorganization .............................................. 90 ZZ. LiabilityofSoleMemberofDisregardedLLCforEmploymentTaxes ................... 92 AAA. SingleMemberLLCandPrivilegeAgainstSelfIncrimination .......................... 93 BBB. AttorneyLiability,Disqualification ............................................... 93 CCC. AttorneyClientPrivilege ....................................................... 93