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: Delaware Business Litigation ReportCourt Of Chancery Upholds Discretion Not To Invest
By Edward M. McNally
Related Westpac LLC v. JER Snowmass LLC, C.A. 5001-VCS (July 23, 2010)
For some reason probably rooted in human nature, parties to LLC agreements seem to think the agreement should provide that all the parties act "fairly" toward one another. Of course, each party then defines what is "fair" by what they want to get out of the deal. However, as this decision points out, when an agreement provides that a party has the discretion whether to advance additional funds or not, that is its choice to make. Whether the choice is "fair" or not is irrelevant and the other parties to the agreement have no basis to complain about that decision.
Full post as published by Delaware Business Litigation Report on July 23, 2010 (boomark / email).
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