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Appellate Division, First Department
Uncategorized

Pryor Cashman LLP v. Wiener — First Department Allows Personal Liability Claims Against LLC Managing Member for $650,000 in Unpaid Legal Fees to Proceed

The Appellate Division, First Department affirmed denial of dismissal of claims against a real estate LLC’s managing member personally for unpaid legal fees of approximately $650,000, finding the allegations of personal assurances, direct billing instructions, and a phantom entity sufficient to survive a motion to dismiss.

Appellate Division, First Department
Uncategorized

DTI-DSIC, LLC v. 930-DSIC, LLC — First Dept. Dismisses Breach of Fiduciary Duty and Contract Claims Against LLC Managing Member for Forced Sale of Defaulting Member’s Interest

The First Department partially reversed denial of a motion to dismiss, holding that a managing member of a Delaware LLC that exercises its contractual right to force a sale of a defaulting member’s interest and set the sale price is not liable for breach of contract or fiduciary duty — but the LLC itself may be liable for improper deductions from the sale proceeds.

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