Question
Cralle Comer and Stephen Chapman form twomanager-managed limited liability companies,Garrison-Ashburn LC and Garrison-Woods LC.Comer and Chapman each own a 50 percent membership interest in each
Cralle Comer and Stephen Chapman form twomanager-managed limited liability companies,Garrison-Ashburn LC and Garrison-Woods LC.Comer and Chapman each own a 50 percent membership interest in each LLC. Comer is the operatingmanager. Chapman files a voluntary petition in bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.In the course of the bankruptcy proceeding, Comerwishes to sell a parcel of land owned by GarrisonWoods. Chapman argues that Garrison-Woods cannotsell the land without his consent on the grounds thatthe LLC's operating agreement requires both members to execute all deeds and sale contracts. Chapmanrefuses to sign the contract of sale or the deed. Comerargues that as operating manager, he is fully authorized to execute the contract. Do you think the courtwill find in favor of Comer or Chapman?
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