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NetJets Aviation, Inc. v. LHC Communications, LLC
Citation:537 F.3d 168 (2008).
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NetJets leased an airplane to LHC for a term of five years. LHC was a lone member LLC , with Zimmerman having sole authority to make all financial decisions for the company. Zimmerman often made withdrawals from LHC’s account for personal use, and use of the airplane was also used by Zimmerman for personal use. Zimmerman transferred money into LHC’s bank account, as well, classifying the transfers as loans rather than capital contributions. LHC terminated the lease after just a year, with the company owing over $340,000 to NetJets.
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