Adkisson's

Charging Orders

The Creditors' Primary Remedy Against A Debtor's

Interest In A Limited Liability Company Or Partnership

Caution state law variances!

 

The Charging Order Practice Guide: Understanding Judgment Creditor Rights Against LLC Members, by Jay D. Adkisson (2018), published by the LLCs, Partnerships and Unincorporated Entities Committee of the Business Law Section of the American Bar Association, click here for more

 

Available for purchase directly from the ABA at https://goo.gl/faZzY6

 

Also available from Amazon at https://www.amazon.com/Charging-Orders-Practice-Guide-Understanding/dp/1641052643

Interesting Opinions re Charging Orders

 

[ We're having to convert about 150 opinions from another database, which will be a tedious and frankly awful process that will take some time, so please bear with us. ]

 

Appeal - Issues relating to the appeal of a charging order

 

Bankruptcy - Treatment of the debtor/member's interest in bankruptcy

 

Compliance - Issues for the LLC and non-debtor members in complying with a charging order

 

Conflicts-Of-Law - Determining which state's laws apply to a charging order dispute

 

Creditor Rights Restrictions - Limitations on creditors' management and informational rights

 

Economic Rights - Limitation of charging order and foreclosure to debtor's economic rights

 

Exclusivity - The charging order as the sole remedy available to creditors and exceptions

 

Exemptions - Available state and federal protections that may apply to charging orders

 

Foreclosure - Liquidation by judicial sale of the debtor's right to distributions

 

Information Rights - Creditors' ability to access information about the LLC

 

Intra-Member Disputes - Where one member obtains a charging order against another

 

Jurisdiction - Issues relating to the court's authority over out-of-state debtors and LLCs

 

Lien - The lien effect of a charging order and priority issues

 

Procedure - The procedure for obtaining a charging order and ancillary provisions

 

Receiver - The role of the receiver in charging order proceedings

 

Single-Member LLCs - Enforcing the judgment against an LLC with a sole member

 

Taxes - Tax issues relating to charging orders for all involved parties

 

= = = = =

 

Additional Court Opinions About charging orders (unsorted)

 

APPELLATE PROCEDURE OPINIONS

 

Rand v. Steinberg, 2018 WL 4183449 (Md.Spec.App., Unreported, Aug. 31, 2018).

Rogers Grp., Inc. v. Gilbert, 2016 WL 2605651 (Tenn.App., 2016).

 

BANKRUPTCY OPINIONS RE DEBTOR/MEMBER IN BANKRUPTCY

 

In re Graves Farms, 2019 WL 3407134 (Bk.D.Kan., July 26, 2019).

Sullivan v. Mathew, 2015 WL 1509794 (N.D.Ill., 2015).

In re Denman, 513 B.R. 720 (W.D.Tenn., 2014).

In re Cleveland, 2014 WL 4809924 (D. Nev., 2014).

In re DeVries, 2014 WL 4294540 (Bk.N.D.Tex., 2014).

In re Wilson, 2014 WL 3700634 (Bk.N.D. Tex., 2014).

In re Soderstrom (Horizons A Far, LLC v. Webber), 484 B.R. 874 (M.D.Fla., 2013).

In re Strata Title, LLC, 2013 WL 1773619 (Bk.D.Ariz., 2013).

In re Myers, 2013 WL 587311 (S.D.Miss., 2013).

In re Warner, 480 B.R. 641, 644-58 (Bankr. N.D.W.Va. 2012).

Matter of H&W Food Mart, LLC, 461 B.R. 904 (BK N.D.Ga., 2011).

In re Dixie Mgt. & Invest., 2011 WL 1753971 (Bk.W.D.Ark., 2011).

In re First Protection Inc. (Fursman v. Ulrich), ___ B.R. ____, 2010 WL 5059589 (9th Cir.BAP (Ariz.), 2010).

In re LaHood, 437 B.R. 330 (Bkrpt.C.D.Ill. 2010).

In re Baldwin (Miller v. Bill and Carolyn LP), 2006 WL 2034217 (10th Cir.BAP (Okla.), 2006) (Unpublished Disposition).

In re Ehmann (Movitz v. Fiesta Investments, LLC), 319 B.R. 200 (Bkrpt.D.Ariz., 2005).

 

COMPLYING WITH ORDER OPINIONS

 

Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018).

Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018).

SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018).

Joshlin Bros. Irrigation v. Sunbelt Rental, Inc., 2014 WL 248104, 2014 Ark. App. 65 (Ark.App., Unpublished, Jan. 22, 2014).

Seven Arts Pictures, Inc. v. Jonesfilm, 2013 WL 599661 (5th Cir., Feb. 18, 2013).

In re Cowstone, LLC, 2012 WL 2205565 (Bkrtcy.E.D.N.C., Slip Copy, June 14, 2012).

Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011).

 

CONFLICT OF LAWS OPINIONS

 

Wells Fargo Equip. Fin. v. Retterath, 2019 WL 1574686 (Iowa, April 12, 2019).

Peach REO, LLC v. Rice, 2017 WL 2963511 (W.D.Tenn., July 11, 2017).

Earthgrains Baking Co. v. Sycamore Family Bakery, Inc., D.Utah Case No. 09CV523 (Aug. 21, 2015).

Mahalo Investments III, LLC v. First Citizens Bank and Trust Co., Inc., 2015 WL 687922, ___ S.E.2d _____ (Ga.App., Feb. 19, 2015).

Capital Trans Int'l, LLC v. Int'l Petroleum Investment Co., 2013 WL 557236 (M.D.Fl., 2013).

American Nat'l Bank v. Medved, 281 Neb. 799, 2011 WL 2586341 (2011).

American Institutional Partners, LLC v. Fairstar Resources, Ltd., 2011 WL 1230074 (D.Del., Mar. 31, 2011).

Koh v. Inno-Pacific Holdings, Ltd., 114 Wash.App. 268, 54 P.3d 1270 (2002).

 

CREDITOR RIGHTS RESTRICTIONS OPINIONS

 

S.E. Property Holdings, LLC v. Chunn, 2017 WL 5167249 (La.App., Nov. 8, 2017).

Weddell v. H2O, Inc., 128 Nev.Adv.Op. #9 (Nev., Mar. 1, 2012).

 

ECONOMIC RIGHTS OPINIONS

 

Pansky v. Barry S. Franklin & Assoc., 2019 WL 581620 (Fla.App., Feb. 13, 2019).

 

EXLUSIVITY OF REMEDY OPINIONS

 

U.S. v. Wilhite, 2017 WL 5517410 (D.Colo., Nov. 17, 2017).

Devoll v. Demonbreun, 2016 WL 4538805 (Tex.App., Aug. 31, 2016).

 

EXEMPTION OPINIONS

 

U.S. v. Alexander, 2016 WL 2893406 (D.Ariz., 2016).

In re Holt, Bk.D.S.C. No. 13-02506-dd (Sept. 12, 2013).

In re Singh, Case No. 11-15433 (N.D.Ohio, Sept. 19, 2012).

 

FORECLOSURE OPINIONS

 

Preservation Holdings, LLC v. Norberg, 2019 IL App (1st) 181136 (June 14, 2019).

In re Talbut, 2016 WL 937373 (N.D.Ohio, Slip Copy, 2016).

Disalvo Properties, LLC v. Bluff View Commercial, LLC, 2015 WL 3759402 (Mo.App., 2015).

Levy v. Carolinian, LLC, 2014 WL 4347503 (S.C., 2014).

Sanders v. Ohmite Holding, LLC, 2011 WL 598436 (Del.Ch., Unpublished, 2011).

 

INFORMATION RIGHTS OPINIONS

 

Succession of McCalmont, 2018 WL 6521176 (La.App., Cir. 3, Dec. 12, 2018).

GenX Processors Mauritius Ltd. v. Jackson, 2018 WL 5777485 (D.Nev., Nov. 2, 2018).

Dream Games v. PC Onsite LLC, 2016 WL 1554978 (D. Ariz., 2016).

Mack Film Development, LLC v. Benevolent Partners, L.P., 2014 WL 929702 (Conn.Super., Fairfield, Feb. 6, 2014).

Wells Fargo Bank, N.A. v. Continuous Control Solutions, Inc., 2012 WL 3195759 (Table) (Iowa App., Slip Copy, Table, Aug. 2012).

Rock Bay, LLC v. Eighth Judicial District Court, 129 Nev. Adv. Op. 21, 2013 WL 1349284 (Nev., April 4, 2013).

Sanders v. Ohmite Holding, LLC, 2011 WL 598436 (Del.Ch., Unpublished, Feb. 21, 2011).

 

INTRA-MEMBER DISPUTE OPINIONS

 

Gillet v. ZUPT, LLC, 2017 WL 716633 (Tex.App. 14th Distr., Feb. 23, 2017).

Young v. Levy, 2014 WL 2741060 (Fla.App., June 18, 2014).

Voll v. Dunn, 2014 WL 7461644 (Conn.Super., Nov. 10, 2014).

 

JURISDICTION OPINIONS

 

German American Capital Corp. v. Morehouse, 2017 WL 3411941 (D.Md., 2017).

Arayos, LLC v. Jimmie Ellis, 2016 WL 1642676 (S.D.Ala., 2016).

Spates v. Office of the Attorney General, 2016 WL 354417 (Tex.App.14th Dist., Jan. 28, 2016).

Vision Marketing Resources, Inc. v. McMillin Group, LLC, 2015 WL 4390071 (D.Kan., July 15, 2015).

Wells Fargo Bank v. Barber, 2015 WL 470589 (M.D.Fla., Feb. 4, 2015).

Shanghai Real Estate Ltd. v. Greenberg, 2014 WL 660624 (Conn.Super., Jan. 28, 2014).

Rockstone Capital, LLC v. Marketing Horizons, Ltd., 2013 WL 4046597 (Conn.Super., Unpublished, July 17, 2013).

 

LIEN AND LIEN PRIORITY OPINIONS

 

MDQ, LLC v. Gilbert, Kelly, 2019 WL 948726 (Cal.App., Distr. 2, Feb. 27, 2019).

Capstone Bank v. Perry-Clifton Enterprises, LLC, 2017 WL 5894915 (Fla.App., Nov. 30, 2017).

JPMorgan Chase Bank v. McClure, 2017 CO 22, 2017 WL 1321334 (Colo., April 10, 2017).

SEC v. Detroit Memorial Partners, LLC, 2016 WL 6595942 (N.D.Ga., Nov. 8, 2016).

Delaware Acceptance Corp. v. Estate of Metzner, 2016 WL 632893 (Del.Ch., Unpublished, Feb. 17, 2016).

In re Inman, 2012 WL 2309359 (Bkrtcy.S.D.Fla., Slip Copy, June 18, 2012).

 

MOTION PROCEDURE AND FORM OF ORDER OPINIONS

 

Ilani v. Abraham, D.Nev. Case No. 2:17-CV-692 (Aug. 21, 2018).

Brown v. Sperber-Porter, 2018 WL 4184372 (D.Ariz., Aug. 24, 2018).

Law v. Zemp, 362 Or. 302 (Jan. 11, 2018).

Textron Financial Corp. v. Gallegos, C.D.Cal. Case No. 15cv1678 (Oct. 7, 2015).

 

RECEIVER OPINIONS

 

Morgan Stanley Smith Barney LLC v. Johnson, 2018 WL 4654711 (D.Minn., Sept. 27, 2018).

Pajooh v. Royal West Investments LLC, Series E, 2017 WL 1173892 (Tex.App., 2017).

Jonas v. Waterman, 2013 WL 6231619 (D.Mont., 2013).

Limbright v. Hofmeister, 2012 WL 5605437 (E.D.Ky., 2012).

 

SINGLE-MEMBER LLC (SMLLC) OPINIONS

 

Saadi v. Maroun, 2018 WL 1282325 (M.D.Fla., 2018).

Heckert v. Heckert, 2017 WL 5184840 (Tex.App., 2017).

Regions Bank v. Hyman, 2015 WL 1912251 (M.D.Fla., 2015).

Hage v. Salkin, 2012 WL 718644 (S.D.Fla., Slip Copy, 2012).

Olmstead v. FTC, 44 So.3d 76 (Fla., 2010).

 

TAX OPINIONS

 

Article: Charging Orders and Taxes: Some of the Answers May Surprise You, by Jay D. Adkisson and Thomas E. Rutledge (American Bar Association BusinessLawToday, Aug. 13, 2018).

 

ADDITIONAL UNSORTED CHARGING ORDER OPINIONS

 

PNC Bank v. Walnut Grove Office Gardens, LLC, N.D.Miss. 17-MC-17 (Oct. 5, 2018).

Estate of Bentley v. Byrd, 2018 WL 930921 (Tenn.App., 2018).

Timberland Bank v. Mesaros, 2018 WL 2215463 (Wa.App., 2018).

St. Louis Bank v. Kohn, 2017 WL 1650034 (Mo.App., 2017).

DuTrac Community Credit Union v. Hefel, 2017 WL 461211 (Iowa 2017).

Branch Banking & Trust Co. v. Crystal Centre, 2017 WL 57345 (M.D.Fla., 2017).

Biscayne Contractors, Inc. v. Redding, 2016 WL 6996125 (D.C.D.C., 2016).

Macharg v. Macharg, 2016 WL 6777526, 2016 PA Super 254 (Pa.Super., 2016).

Chandler Medical Building Partners v. Chandler Dental Group, 855 P.2d 787, 175 Ariz. 273 (Ariz.App.Div.1, 1993).

 

 

C O M M O N      P A G E      F O O T E R

RECENT ARTICLES BY JAY ADKISSON

 

2019.06.24 ... Charging Order Protection Backfires At Judicial Sale In Preservation Holdings

2019.04.27 ... Iowa Supreme Court Serves Up A Shoddy Charging Order Opinion In Retterath

2019.03.19 ... Million Dollar Quartet Leads To Lien Priority Dispute Involving Charging Order

2019.02.18 ... Florida Order Awarding LLC Interest To Creditor Reversed In Pansky

 

More Articles On Charging Orders click here

 

THE CHARGING ORDER PRACTICE GUIDE BY JAY ADKISSON

 

The Charging Order Practice Guide: Understanding Judgment Creditor Rights Against LLC Members, by Jay D. Adkisson (2018), published by the LLCs, Partnerships and Unincorporated Entities Committee of the Business Law Section of the American Bar Association, click here for more

 

Available for purchase directly from the ABA at https://goo.gl/faZzY6

 

Also available from Amazon at https://www.amazon.com/Charging-Orders-Practice-Guide-Understanding/dp/1641052643

LAW REVIEW ARTICLES BY JAY ADKISSON

 

For more on the historical background of Charging Orders and contemporary issues involving the same, see Jay Adkisson's article, Charging Orders: The Peculiar Mechanism, 61 South Dakota Law Review 440 (2016). Available at SSRN: https://ssrn.com/abstract=2928487

WEBSITE CONTENTS

 

General Information

 

Analysis of Uniform Limited Liability Company Act Sections re Charging Orders

  • Charging Orders (Section 503) contains the general charging order provisions.
  • Transfers of Transferable Interests (Section 502) includes definitions of "transfer" (102(23)), "transferable interests" (102(24)), and "transferees" (102(25)) defines to what the charging order attaches.
  • Definition of Distribution (Section 102(4)) specifies the economic right obtained through a charging order lien and/or foreclosure.

 

The Uniform Acts re Charging Orders and Transferable Interests (without Jay's comments):

 

Effect of Bankruptcy On The Debtor-Member's LLC Interest here

 

 

Collected Court Opinions On Charging Orders here and below

 

Appeal - Issues relating to the appeal of a charging order

 

Bankruptcy - Treatment of the debtor/member's interest in bankruptcy

 

Compliance - Issues for the LLC and non-debtor members in complying with a charging order

 

Conflicts-Of-Law - Determining which state's laws apply to a charging order dispute

 

Creditor Rights Restrictions - Limitations on creditors' management and informational rights

 

Economic Rights - Limitation of charging order and foreclosure to debtor's economic rights

 

Exclusivity - The charging order as the sole remedy available to creditors and exceptions

 

Exemptions - Available state and federal protections that may apply to charging orders

 

Foreclosure - Liquidation by judicial sale of the debtor's right to distributions

 

Information Rights - Creditors' ability to access information about the LLC

 

Intra-Member Disputes - Where one member obtains a charging order against another

 

Jurisdiction - Issues relating to the court's authority over out-of-state debtors and LLCs

 

Lien - The lien effect of a charging order and priority issues

 

Procedure - The procedure for obtaining a charging order and ancillary provisions

 

Receiver - The role of the receiver in charging order proceedings

 

Single-Member LLCs - Enforcing the judgment against an LLC with a sole member

 

Taxes - Tax issues relating to charging orders for all involved parties

 

= = = = =

 

Additional Court Opinions About charging orders (unsorted)

 

OTHER INFORMATIONAL WEBSITES BY JAY ADKISSON

 

  • About Jay Adkisson - More about Jay D. Adkisson, background, books, articles, speaking appearances - https://jayadkisson.com/

 

  • Captive Insurance Companies - Licensed insurance companies formed by the parent organization to handle the insurance and risk management needs of the business - https://captiveinsurancecompanies.com/

 

 

  • Collecting On A Judgment - An explanation of common creditor remedies, strategies and tactics to enforce a judgment, including a discussion of common debtor asset protection strategies - https://collectingonajudgment.com/

 

  • Voidable Transactions - Discussion of the Uniform Voidable Transactions Act (a/k/a 2014 Revision of the Uniform Fraudulent Transfers Act) and fraudulent transfer law in general - https://voidabletransactions.com/

 

  • Private Retirement Plans - An exploration of a unique creditor exemption allowed under California law which can be very beneficial but is often misused - https://privateretirementplans.com/

 

  • Protected Series LLCs - An examination of the single most complex statutory legal structure yet created, with particular reference to the Uniform Protected Series Act of 2017 - https://protectedseriesact.com/

 

  • California Enforcement of Judgments Law - Considers the topic of judgment enforcement in California, including the California Enforcement of Judgments Law and other laws related to California creditor-debtor issues - https://calejl.com/

 

 

Contact Jay Adkisson:

 

Phone: 702-953-9617     Fax: 877-698-0678     jay [at] jayad.com

 

Unless a dire emergency, please send me an e-mail first in lieu of calling to set up a telephone appointment for a date and time certain.

 

Las Vegas Office: 6671 S. Las Vegas Blvd., Suite 210, Las Vegas, NV 89119, Ph: 702-953-9617, Fax: 877-698-0678. By appointment only.

 

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Social Media Contact: Twitter and LinkedIn

 

Admitted to practice law in Arizona, California, Nevada, Oklahoma and Texas.

 

© 2019 Jay D. Adkisson. All Rights Reserved. No claim to government works or the works of the Uniform Law Commission. The information contained in this website is for general educational purposes only, does not constitute any legal advice or opinion, and should not be relied upon in relation to particular cases. Use this information at your own peril; it is no substitute for the legal advice or opinion of an attorney licensed to practice law in the appropriate jurisdiction.  This site is https://chargingorder.com Contact: jay [at] jayad.com or by phone to 702-953-9617 or by fax to 877-698-0678.