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UtahIn re Community Translator Network, LLC, Case No. 2:17-cv-00736, decided 2/6/2018.  The U.S District Court in Utah ruled that once a bankruptcy court appoints a trustee for a debtor LLC only that trustee can represent the LLC in litigation and the former manager had no authority to appeal on the LLC’s behalf.

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New JerseyGoldstein v. Roxborough Real Estate, LLC, C.A. No:15-cv-3835, decided 1/22/2018.  The U.S. District Court in New Jersey ruled that a limited partner could not bring a lawsuit on behalf of limited partnerships because he was not an attorney, even if the limited partnerships could not afford an attorney and if all of the partnership interests were assigned to the limited partner.

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California3123 SMB LLC v. Horn, No. 16-55304, decided 1/17/2018.  The U.S. Court of Appeals, Ninth Circuit ruled that for diversity jurisdiction purposes a recently formed holding company’s principal place of business is in the state where it plans to hold its board meetings.

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ArkansasMorrison v. MC Express LLC, Case No. 3:17-CV-00144, decided 1/9/18.  The US District Court, Eastern District of Arkansas held that a director and majority shareholder of a corporation did not owe fiduciary duties to the plaintiff – who had a contractual right to a percentage of stock that had not yet vested.  Fiduciary duties are only owed to present shareholders, not speculative or future shareholders.

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PennsylvaniaTownship of Bristol v. 1 Enterprise, LLC, No.658 C.D. 2017, No. 727 C.D. 2017, decided 1/5/18. The Pennsylvania Commonwealth Court held that a Delaware LLC whose certificate of formation was cancelled by the Delaware Division of Corporations could challenge an assessment of its property in an eminent domain proceeding because it had its good standing restored before the trial court entered judgment.

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FederalOlagues v. Steinour, Case No. 2:17-CV-49, decided 1/4/18.  The US District Court, Southern District of Ohio held that a shareholder cannot appear pro se in a suit alleging a violation of Sec. 16(b) of the Securities and Exchange Act because the suit is on behalf of the corporation and a corporation must be represented by a licensed attorney.

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OhioKoudela v. Johnson & Johnson Custom Builders, LLC, Case No. 2017-L-024, decided 12/29/17. The Ohio Court of Appeals held that an LLC, by doing business under a fictitious name, does not create a separate entity and the failure to register the name does not prevent the LLC from defending itself.  Therefore the court enforced an arbitration provision in a contract entered into by an LLC using an unregistered fictitious name.

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MassachusettsSegal v. Genitrix, LLC, SJC-12291, decided 12/28/17.  The Massachusetts Supreme Judicial Court held that the Massachusetts Wage Act does not impose personal liability for unpaid wages on board members acting in their capacity as board members or on investors engaged in ordinary investment activity.

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New YorkJacobs v. Cartalemi, 2017 N.Y. Slip Op. 08506, decided 12/6/17.  The New York Supreme Court, Appellate Division held that an LLC member who withdraws from an LLC while his derivative suit is pending loses standing to pursue the derivative causes of action.

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NevadaGardner v. The Eighth Judicial District Court of Nevada, 133 Nev. Adv. Rep. 89, decided 11/22/17. The Nevada Supreme Court held that the alter ego doctrine applies to Nevada LLCs even though there is no express statutory provision in LLC Act.  The court also held that while managers are not liable for the LLC’s debts based on their status as managers, they are liable for their own acts of negligence.

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