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L. Londell McMicllan v. Sharon Nelson
C.A. No. 2024-0016-KSJM
| Del. Ch. | Aug 12, 2024
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Background:

  • The case involves a dispute over the validity of amendments to the Prince Legacy Operating Agreement dated July 25, 2022.
  • Plaintiffs challenged whether defendants’ attempt to amend the LLC Agreement was valid under the agreement’s terms.
  • The court expedited the matter and, in a July 5, 2024 memorandum opinion, granted summary judgment for the plaintiffs, holding the amendments were invalid.
  • Defendants filed a Rule 59(f) motion requesting clarification (or reargument) over whether the LLC Agreement itself was deemed valid in the Decision.
  • Defendants had not answered the original complaint before the court's decision, despite the opportunity to do so.
  • Parties stipulated to allow defendants to answer post-decision, reserving their right to assert affirmative defenses and plaintiffs’ right to challenge them.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Validity of Amendments to the LLC Agreement Amendments were invalid per the agreement Amendments were valid under a disputed interpretation Amendments invalid under the agreement
Whether the Decision ruled on the validity of the entire LLC Agreement No such ruling Sought clarification/argued decision did rule on validity No clarification needed; summary judgment only on amendments
Appropriateness of Rule 59(f) Clarification or Reargument No overlooked law or facts Court misapprehended or overlooked legal standards or facts Motion for reargument/clarification denied
Effect of Defendants' failure to answer before decision Defendants waived certain rights Delay was strategic, not waiver Defendants may now answer and assert defenses, subject to possible fee shifting

Key Cases Cited

  • None provided with official reporter citations in the provided text.
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Case Details

Case Name: L. Londell McMicllan v. Sharon Nelson
Court Name: Court of Chancery of Delaware
Date Published: Aug 12, 2024
Docket Number: C.A. No. 2024-0016-KSJM
Court Abbreviation: Del. Ch.