Bankruptcy Judge Turns Delaware LLC Law on its Head: A Lesson in LLC Management and the Risk of Member Insolvency

By Daniel W. Glasser on January 16, 2024. Introduction It is no secret that Bankruptcy can turn everything we know about the law on its head. And when that happens in the realm of limited liability company (“LLC”) governance, investors, bankers and lawyers should pay attention. Free markets depend on predictability. Indeed, Delaware is often favored as a venue for …

A Case Study In Business Divorce: Member Expulsion And Its Associated Hazards

By Daniel Glasser and James Kin The forced termination of any business relationship is painful. But the expulsion of a member from a limited liability company (an “LLC”) can raise additional challenges—especially where the rules of engagement are either poorly defined or undeveloped. For example, a recent decision by the Delaware Court of Chancery may leave members personally liable for …

Colorado Firm Dismissed from Complex Class Action Case on a Preliminary Motion

Chipman Glasser, LLC recently obtained prompt dismissal for a Colorado-based company that was named as a defendant in a nation-wide class action that involved potentially millions of class members. The client is a local Denver success story that administers insurance benefits on behalf of major national and regional health insurance companies. Sued in federal district court, the client was facing …

Smart Discovery and Litigation Strategies for Text Messages: Part 3

By E. Job Seese The previous two installments in this series addressed the pitfalls of conducting business communications via text messaging and outlined some practical measures that both individuals and companies can take in navigating the iWorld minefield. This third and final installment discusses the still-nebulous, but rapidly-evolving, area that text messages currently occupy in the civil discovery landscape. And …

Staying Smart in a Smartphone World: Part 2

By E. Job Seese The first post in this series discussed the pitfalls—and advantages—of conducting important business communications via text messaging. This second installment addresses some of the practical measures that individual businesspeople as well as companies can take in navigating the iWorld minefield. NSFW                              The increasing use of text messages in conducting business affairs suggests that many have …

Staying Smart in a Smartphone World

By E. Job Seese NOTE: THIS IS THE FIRST IN A MULTI-PART SERIES. You, like the rest of the world, have learned the do’s and don’ts of conducting business by email. But what about texting, which has become the preferred method of communication for large swaths of the business world? What are the advantages of conducting business via text? And …

Colorado Supreme Court Conforms Pleading Standard to Federal Practices

By Dean Shaffer The Colorado Supreme Court today, in Warne v. Hall, Case No. 14SC176, adopted the stricter civil pleading standard first applied by the U.S. Supreme Court in Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007). Under the new standard, Colorado courts may dismiss claims that are not “plausible,” meaning that plaintiffs must support their claims with factual allegations sufficient …

Discharged Company Officer And Founder Settles Derivative Action and Wrongful Termination Suit on Favorable Terms

Chipman Glasser, LLC represented the founder and president of a high-tech bio-pharmaceutical company who was abruptly discharged after he brought to the company’s attention several questionable business practices. On the client’s behalf, the firm asserted claims of wrongful termination under the state whistleblowing law and brought a derivative action on behalf of the company. The case settled on terms favorable …

French Investment Banker Dismissed From Colorado Lawsuit Involving An Alleged Investment In Cyprus—Followed By A Fee Award

Chipman Glasser, LLC recently defended a party who was belatedly brought into a multi-national case by a third-party plaintiff. The lawsuit involved parties and alleged conduct spanning four continents, and our client, a Swiss businessman with no connection whatsoever to Colorado, filed a motion to dismiss for lack of personal jurisdiction. Under the applicable rules, the client was required to file his …

Underground Utility Contractor Awarded Damages For Unpaid Construction Costs

Following a four-day jury trial, Chipman Glasser, LLC secured a verdict in favor of an underground utility contractor. Our to installed the sewer and water system for a private developer. But upon completion of the project, the developer refused to pay the final invoice, raising various complaints about the quality of the work. The case involved conflicting expert testimony regarding alleged …