Llc Member Dispute 1,000,000.00 Settlement

Bland Richter represented two members whose membership interests in two businesses totaled 50%. The entire membership was deadlocked in their voting and the members were headed to protracted and expensive business litigation with each other. The businesses were highly profitable on an annual basis. On behalf of our clients, we asserted that claims of breaches of fiduciary duty and violations of the South Carolina LLC statute had occurred which required that either our clients’ interests be sold, the other members’ interests be purchased or the entities be sold or dissolved by court order. The matter was complicated by the lack of a written operating agreements to govern disputes. Consequently, the South Carolina LLC statute and interpretive case law governed the disputes. Through pre-suit negotiations, our clients were successful in obtaining a $1,000,000.00 confidential settlement for the purchase of their 50% interests, even though the settlement amount exceeded the value of the businesses in their entirety. ( Winter, 2016 )