COURT AFFIRMS IMPORTANCE OF OPERATING AGREEMENT

Business litigation between LLC members can be a bitter battle. An operating agreement may control the outcome of litigation, especially, where personal relationships have broken down.  In a recent case, a Florida appellate court stated “To the extent the couple 'raced to the courthouse' to divest one another of Manager status—external filings do not usurp the contractual rights expressly conferred under an operating agreement.” The court further stated “To allow such a result would undermine basic contractual principles and the Act itself. Indeed, section 605.0210(5)(c), Florida Statutes, provides that such a filing 'does not ... [c]reate a presumption that the document is valid or invalid or that information contained in the document is correct or incorrect.'”

Weber Law, P.A. focuses on business disputes and real estate litigation.  For more information about this post, please do not hesitate to contact Steven D. Weber at steve@weberlawpa.com or 305-897-0619. Past results are not indicative of future results.