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Corporations Keyed to Rhee
Kilpatrick v. White Hall on MS River, LLC
Citation:
207 So.3d 1241 (Miss. 2016)Facts
A land sale contract was executed by White Hall, LLC. In the end, only three of the men executed the agreement: Cvitanovich, Richards, and McBeth. The agreement provided no procedure for including a person who failed to make the initial $500,000 contribution. However, for existing members, it stated that no member shall be entitled to withdraw or resign from the company. Kilpatrick, Cvitanovich, Richards, and McBeth testified that Kilpatrick alerted the other men about his inability to timely wire $500,000 only a few days before the date of closing. Kilpatrick made a demand on White Hall to review the company records; White Hall refused. Kilpatrick filed his complaint, alleging that he was a member of White Hall and thus was entitled to inspect the company records. He sought a judgment validating his ownership interest in White Hall, a finding that White Hall had been unjustly enriched by retaining Kilpatrick’s capital contribution of $186,500 and the establishment of an equitable lien to return that capital contribution to him.
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