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Business Planning Keyed to Gevurtz
CCD, L.C. v. Millsap
Citation:
116 P.3d 366 (2005)Facts
In 1997, Craig Newman, Doug Stanley, and Christopher Millsap formed CCD, L.C., a limited liability company operating United Title Services of Southern Utah. Millsap managed operations in St. George, while Newman and Stanley oversaw marketing in Salt Lake County. In March 2000, Newman and Stanley discovered that Millsap had misappropriated $625,000 from CCD’s trust account to finance his personal interest in a subdivision. After Millsap admitted to taking the money, the members entered into an amended operating agreement under which Millsap agreed not to access the trust account or write company checks, and Newman loaned Millsap money to replace the trust funds. Shortly thereafter, Newman discovered that Millsap had continued to misappropriate trust funds totaling $11,540.06. CCD terminated Millsap’s employment, and when Millsap later attempted to “retire” from the company, CCD filed suit seeking his expulsion as a member.
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