QUESTION

I was in a 2 person LLC. Part of our operating agreement states that if a person is delinquent on investments they are supposed to be giving

Asked on Aug 16th, 2012 on Contracts - California
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to the company the other members can vote the person out of the company. I have meeting minutes that state that the other member was supposed to invest at least $50/ week until $11,000 was met by the end of the calendar year. She invested $100 two times over the course of 3 months. She also spent $111 of the companies money for personal un approved expenses. I presented her with all of the information and a refund of what was left of her $200 investment. She is saying this was illegal and she is proceeding to sue me. She says I broke other "contracts" from our meeting minutes which just included sending her an email after I met with the bank which I never did because I didn''t end up meeting with the bank. She''s also Threatening that she has witnesses and proof that I haven''t been depositing all of the profits from various rentals into our account. How worried should I be? Does she have a valid case or do you think it would be thrown out? Thank you
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Business Transactions Attorney serving Los Angeles, CA at Doland & Fraade
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No lawyer is going to estimate your chances. Gettting thrown out of court on factual grounds doesn't happen, only on legal grounds. It appears you will head to trial. If you think you can master the rules of evidence and prepare exhibit lists and prepare your witness you should proceed. If, however, the LLC was sued, it can only appear by an attorney, not an officer, Member or Manager. I suspect your LLC was not properly formed and I further suspect the membership interests were not validly interests. Frankly, if you are in a lawsuit, the time to consult an attorney was yesterday.
Answered on Aug 19th, 2012 at 12:08 PM

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