LLC Dissolution. Walter Van Houten and John King formed 1545 Ocean Avenue, LLC, with each managing 50 percent of the business. Its purpose was to renovate an existing building and build a new commercial building. Van Houten and King quarreled over many aspects of the work on the properties.

King claimed that Van Houten paid contractors too much for the work performed. As the project neared completion, King demanded that the LLC be dissolved and that Van Houten agree to a buyout. Because the parties could not agree on a buyout, King sued for dissolution. The trial court prevented further work on the project while the dispute was settled. As the ground for dissolution, King cited the fights over management decisions. There was no claim of fraud or frustration of purpose. The trial court ordered that the LLC be dissolved.

Van Houten appealed. Should either of the owners be forced to dissolve the LLC before completion of its purpose—that is, finishing the building projects? Discuss. [In re 1545 Ocean Avenue, LLC, 893 N.Y.S.2d 590 (N.Y.A.D. 2 Dept. 2010)]
(See pages 733–734.)