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Reese v. Newman
District of Columbia Court of Appeals
131 A.3d 880 (2016)
Allison Reese (defendant) and Nicole Newman (plaintiff) co-owned ANR Construction Management, LLC. Due to managerial differences, Newman informed Reese that she wished to dissolve the limited-liability company (LLC). Reese did not want to dissolve the LLC but wanted to keep running it herself. Instead, Reese wanted Newman to be dissociated from the LLC. Newman filed suit, seeking judicial dissolution of the LLC. Reese counterclaimed, seeking a court order dissociating Newman from the LLC. A jury found grounds for both judicial dissociation and judicial dissolution. The trial court ordered dissolution. Reese appealed, arguing that if one of the statutory grounds for dissociation exists, the court must order dissociation. The dissociation statute stated that “a person shall be dissociated as a member” from an LLC if the person “is expelled as a member by judicial order” based on one of the statutory grounds for dissociation.
Rule of Law
Holding and Reasoning (King, J.)
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