Legal Question in Business Law in Texas

We have an LLC that owns 3.5 acres with event center by family members in the middle of a 100 acre ranch which is owned by the 40% partner. One partner is at 51%, property owners at 40%, one other relative at 9%. 100 Acres was owned free and clear and their home is free and clear until they put the 100 acres up for collateral on the Note on 3.5 acres and event center. Now the 51% owner got mad, came in, took over operations for the last 1 1/2 years, run it into the ground, lost more money than ever, and refuses to let the 40% owners have any say so in the business whatsoever. If he continues, the 3.5 acres with event center could go under, causing the note to go into default which has the remainder of the 100 acres with their home on it up for foreclosure. Do the 40% owners have any rights or options as to how they can take control from the 51% and the 9% owners before the place goes completely under? Located in Denton Texas.


Asked on 8/25/09, 12:10 pm

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

You can file suit asking for a receiver to be appointed, among other things. You have rights as a minority owner but absent an agreement, a lawsuit, which will be complicated and not inexpensive, is the standard option.

OR, if you have the cash, you could buy the note from the bank and foreclose yourself.

Either way you're going to need a lawyer and this will be neither quick nor easy.

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Answered on 8/25/09, 1:49 pm


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