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Corporations Keyed to O’Kelley
Obeid v. Hogan
Citation:
2016 WL 3356851Facts
The Corporate LLC and the Manager-Managed LLC jointly manage over $1 billion in real estate assets. Obeid, La Mack, and Massaro are its only members. The internal affairs of the Corporate LLC are governed by its limited liability company agreement. The Mangaer-Managed LLC is also controlled and managed solely by the three members. On July 2014, La Mack and Massaro voted to remove Obeid as President and operating manager of the Manager-Managed LLC. Obeid filed an action against them, contending that La Mack and Massaro had started competing companies using assets belonging to the Corporate LLC and the Manager-Managed LLC. In mid-November 2015, Obeid learned through his counsel that La Mack and Masscro had hired Judge Hgan. Obeid had not previously known about the engagement. By letter dated December 28, 2015, Judge Hogan introduced himself to La Mack, Masscro, and Obeid, informed them of his role, and expressed a willingness to begin his investigative work in performing the function of a special litigation committee. Obeid filed this action, seeking a declaratory judgment that Judge Hogan cannot act as a special litigation committee for either company and that he has no authority over any derivative claims.
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