Auriga Capital Corp., et al. v. Gatz Properties, LLC, et al.

A group of minority investors sued the manager of an LLC for damages, arguing that the manager breached his contractual and fiduciary duties. The court concluded that the manager's course of conduct beached both his contractual and fiduciary duties. Using his control over the LLC, the manager took steps to deliver the LLC to himself and his family on unfair terms. Therefore, the court entered a remedy, taking into account the distribution received by plaintiffs at the auction, and adding interest, compounding monthly at the legal rate, from that time period. Because the manager had made this litigation far more cumbersome and inefficient than it should have been by advancing certain frivolous arguments, the court awarded plaintiffs one-half of their reasonable attorneys' fees and costs under the bad faith exception to the American Rule. View "Auriga Capital Corp., et al. v. Gatz Properties, LLC, et al." on Justia Law