Common Issues – LLC Litigation

In a recent decision by Justice Andrew Borrok in the New York County Commercial Part, the court was faced with several common issues which arise when two LLC members find themselves in court. In the May 14, 2024 decision handed down in Matter of the Petition for Dissolution pursuant to NY LLC Law v. Gad Ruhman, Index No. 656166/2023, the court addressed several issues including (i) when dissolution of an LLC is warranted; (ii) whether a cause of action sounding in breach of fiduciary duty of care and loyalty can be asserted in a derivative action based upon allegations that respondent had failed to provide access to the books and records of the LLC; and (iii) whether the respondent entered into certain transactions not in the best interests of the LLC and/or against the express interest of the petitioner.

Read the full blog here.