Limited Liability Companies. Coco Investments, LIC, and other investors particip

Question

Limited Liability Companies. Coco Investments, LIC, and other investors participated in a condominium con- ger River Terrace, LLC. The participants entered into a new LLC agreement for the project. The investors subsequently complained that Zamir had failed to disclose its plans for dramatic changes involving higher-than-expected construction costs and delays. They also daimed that Zamir had failed to provide financial information and had restructured loans in a manner that allowed Zamir version project to be managed by Zamir Mana rgpresentatives to avoid personal liability. The investors sucd r on various grounds, including breach of contract and rach of fiduciary duty. Zamir moved for summary judg- nien. How s Investments Zamir Manager River Terrace, LLC, 26 Misc.3d 1231 ould the court rule? Explain. [Coco Sup 2010ee The Limited Liability Company)

Explanation / Answer

Legal Reasoning:

Issue:

·        Coco Investments, River Terrace Limited Liability Company a real estate company and other investors participated in a building conversion project

·        It was supposed to be managed by Zamir, Manager, River Terrace, LLC.

·        All the participants entered into a new LLC agreement for the project, a Legal document which typically contains:

- the purpose of the business

- who and all managers the project

- how cost and revenues are dealt with

- Communication and handling of issues

·        The investors complained that lack of communication and disclosure by Zamir about plans for dramatic changes which was involving higher-than-expected construction costs and time delays.

·        They also claimed that Zamir had failed to provide financial information and had restructured loans in a manner that allowed Zamir representatives to avoid personal liability

·        Finally the investors sued Zamir on various grounds, including

-        breach of contract which means to break the agreed terms and

-        breach of fiduciary duty which means it is ones responsibility to act honestly towards the other parties

Rule: Now the court will take up this case by

-        Looking into the agreement

-        Looking into the breach and failures

-        Looking into fiduciary duties ect

-        Will give the chance to defendant to prove non guilty

-        Finally will try to solve the issue at claims court level

Analysis: After analyzing the court would come up with

-        Compensatory or punitive damages to the investors by LLC

-        Will ask to perform the specific performance which was missed out

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