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Business Organizations Keyed to Bauman
Haley v. Talcott
Citation:
864 A.2d 86 (Del.Ch. 2004).Facts
Talcott owned a restaurant called Redfin Grill and was operated by Haley under an employment contract that gave him a 50% share of the profits. In 2003, Haley and Talcott created Matt & Greg Real Estate, LLC to purchase the property where Redfin Grill was situated. Redfin Grill paid the LLC $6,000 per month for rent. In October 2003, Haley and Talcott had a falling out over Haley’s employment contract and Talcott sent Haley a letter purporting to accept his resignation. Haley, thereafter, sent letters asserting he did not resign and, as a member of the LLC, rejecting any new lease with Redfin Grill, voting to revoke Redfin Grill’s possession of the property, and voting to put the property up for sale. Since there was no majority vote to take such actions, Redfin Grill and the LLC’s relationship maintained the status quo after the lease expired.
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