In any commercial agreement, one enters into the agreement confident in the belief that it will be productive and beneficial to both sides. Unfortunately, that doesn’t always happen. Sometimes, business relationships break down, and litigation is the result. If you find yourself in a failed business relationship that has reached (or is headed toward) litigation, it is important to have skilled Georgia business litigation counsel representing you, both to help you pursue your claims and to defend against the claims of your opposition.
One recent example of a lawsuit that resulted from a business relationship disintegration was a real estate investment LLC that was created to own and operate certain commercial real estate properties in the Buckhead area of Atlanta. The two members of the LLC established an operating agreement in 1995. Eighteen years after its creation, the LLC sold its last asset and planned to distribute its proceeds and dissolve.
A dispute arose regarding the distribution of those proceeds, and that dispute led to litigation. In the first case, a former member of the LLC sued and won a $625,000 judgment. In the case recently before the Court of Appeals, the LLC and its member had sued the former member in pursuit of a declaratory judgment from the court regarding the proper distribution of the LLC’s proceeds. The defendant countersued for breach of contract and breach of fiduciary duty. While the plaintiffs were able to persuade the trial judge to grant a summary judgment in their favor on the defendant’s counterclaims, the appeals court concluded that the former member should be allowed to go forward with his case.