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