Business Associations Keyed to Hamilton
Kasten v. Doral Dental USA, LLC
Facts
Kasten (Plaintiff), a non-managing member of Doral Dental USA, LLC (Doral Dental) (Defendant) claimed her rights under the operating agreement of the LLC and state statute to inspect and copy company records and documents, including emails and document drafts from the prior three years that might be associated with the sale of the company and possible mismanagement. The operating agreement gave members the right to examine the company’s “books and records” as well as “Company documents” “upon reasonable request.” The company (Defendant) complied with some of her requests, but not all. Kasten (Plaintiff) then brought suit to compel the production of documents and records not yet produced. The company (Defendant) opposed her request to inspect emails and other electronically stored files, claiming that the request was unreasonable, as it potentially would cover hundreds of thousands of emails. The trial court held that emails and document drafts were not unquestionably subject to inspection under state statute or the operating agreement. The state’s intermediate appellate court then certified the issue to the state’s highest court.
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