Legal Question in Business Law in Texas

LLC partners conflict of interest

I own 25% interest in an LLC that was set up to develop a housing subdivision. The partners that own 50% have put our investment in jeopardy by using our LLC to benefit their other interest and business. Do I have any course of action to hold the 50% owners liable for my investment?

Asked on 4/10/04, 12:35 pm

3 Answers from Attorneys

Peter Bradie Bradie, Bradie & Bradie

Re: LLC partners conflict of interest

The answer is a "maybe", depending upon the language of the operating agreement and the actual actions the 50% holders have taken.

Read more
Answered on 4/11/04, 3:34 pm
Loyd Wright Loyd H. Wright

Re: LLC partners conflict of interest

The short answer is yes. There may be issues of usurping a company opportunity, breach of fiduciary duty, conversion, breach of contract, fraud, etc.

Read more
Answered on 4/10/04, 1:20 pm
David Leon David L. Leon, P.C.

Re: LLC partners conflict of interest

It sounds like you may have a cause of action. However, I am unclear how they used the LLC to benefit themselves at the expense of your interest. I would need more information before I can make an assessment.

Read more
Answered on 4/10/04, 1:21 pm


Related Questions & Answers

More Business Law questions and answers in Texas