The petitioner/LLC member requested that a court appointed receiver do an accounting as part of the wind-up of 176 West 87th Leasehold LLC with an award of legal fees.The New York Supreme Court, New York County held that petitioner was not entitled to legal fees but was entitled to an accounting. The court held the Operating Agreement requires unanimous consent to make decisions on behalf of the LLC. The members were unable to effectively communicate with each other and to properly discuss whether or not to sell the lease, which was the LLC’s sole asset. Some of the members were alleged to be taking the LLC’s funds for their own personal use without the consent of all of the members. Thus, the management of the LLC was unwilling to reasonably permit the stated purpose of the entity to be achieved, dissolution of the NY LLC was proper pursuant to NY Limited Liability Company Law §702, appointment of a receiver was appropriate, and an accounting was warranted.
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