Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

BankruptcyCorporate EntitiesFeaturesRegulationThe Bankruptcy Strategist

Current Issues In Enforcing Judgments Against LLCs

By Joseph P. Briggett
June 01, 2018

The Charging Order Statute

On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the membership interest of the member with payment of the unsatisfied amount of judgment with interest. To the extent so charged, the judgment creditor shall have only the rights of an assignee of the membership interest.

Id

The Judgment Creditor's Right to Information

See Channelside Servs., LLC v. Chrysochoos Grp., Inc. Channelside Id Wells Fargo Bank, Nat. Ass'n v. Continuous Control Solutions, Inc.

Rights Against Single Member LLCs

Eureka VIII LLC v. Niagara Falls Holdings LLC See e.g. See Olmstead v. F.T.C.

Before Olmstead, if a Florida judgment creditor levied on a debtor's ownership in a single-member LLC, the most the judgment creditor could get was a statutory charging order …. In the instant case, that result would not have threatened the Debtor, because the Debtor did not receive any “profits or distributions” from the Middle Tier, single-member LLCs. Pursuant to the holding of Olmstead, … [the creditor/movant] became entitled to cause the Debtor to surrender its “right, title and interest” in, and to, all of the Middle Tier LLCs. The Debtor would have lost control of the subsidiaries, and subsequently all the real property owned by the subsidiaries. In order to prevent that outcome, the Debtor filed the instant case.

In re Davis Heritage GP Holdings, LLC See Olmstead See Pajooh v. Royal West Investments LLC, Series E

Effect of Bankruptcy Filing

See United States v. Whiting Pools, Inc. In re Albright In re A-Z Electronics, LLC In re Garrison-Ashburn, LC see also In re Mohawk Traveler Transportation, LLC Albright Albright ***** Joseph Briggett [email protected]

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Disconnect Between In-House and Outside Counsel Image

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.