Business Divorce Roundtable – Tom Rutledge Takes On LLC Member Expulsion

Expulsion a/k/a dissociation of an LLC member is a hot-button topic whether it’s pursuant to the terms of an operating agreement or by court order. This episode of the Business Divorce Roundtable features an interview with Kentucky lawyer Tom Rutledge, one of the nation’s leading experts on alternative entities, who, among his many scholarly writings, recently published an article in the Journal of Passthrough Entities called “It’s Not Me, It’s You: Planning for Expulsion of Members from LLCs.” The interview also highlights the very recent decision by the New Jersey Supreme Court in IE Test v. Carroll in which the court reversed a lower court’s order expelling a member and crafted its own set of factors for deciding whether a party satisfies its burden under the “not reasonably practicable” prong of the statute authorizing judicial expulsion of an LLC member.