Huggins v. Scott
New York Supreme Court
2019 WL 6310506 (2019)
Facts
In 2007, Teresa Scott (defendant) founded Women’s World of Boxing, a boxing club. In 2014, Scott organized the club as Women’s World of Boxing, LLC (WWB). The operating agreement provides that the purpose of the limited-liability company (LLC) is to conduct any lawful business. Scott began dating Korin Huggins (defendant) in 2015. In 2016, Huggins agreed to finance construction of a gym and company headquarters for the boxing club and to personally guarantee the lease. In 2017, Huggins was granted a minority interest in WWB. The amended operating agreement provided that Scott was CEO and COO with a 60 percent membership interest and that Huggins was CFO with a 40 percent membership interest. In 2018, Scott and Huggins ended their romantic relationship. Huggins sent a letter to Scott requesting that Scott buy back Huggins’s membership interest for $75,000, as provided in the operating agreement. Huggins also acknowledged that operating the boxing club was Scott’s dream and that Scott had been successfully maintaining the business without more contributions from Huggins. Later, Huggins sent a letter demanding that Scott provide her with financial documents. Huggins then filed an action seeking judicial dissolution of WWB, appointment of a receiver for WWB, and access to WWB’s books and records in the New York Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Perry, J.)
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