How to Expel an LLC Member In Colorado

Man is Expelled from an LLC

Expelling, or disassociating, a Colorado limited liability company member may become necessary. Disagreements among LLC members about management, growth, and the direction of the business may lead to the conclusion that a member should disassociate from the LLC. Here’s what to look at when trying to expel or disassociate a member from a Colorado LLC.…

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Attorney’s Fees for the Wrong of Another

Most states, including Colorado, follow the American Rule when it comes to awarding attorney’s fees. This means that attorney’s fees are not awardable to the winning party in a lawsuit unless a contract or statute allows it. Attorney’s fees are also awardable for certain constitutional claims. The doctrine of wrong of another is a further…

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My Business Partner Stole from the Company. Now what?

Colorado Civil Theft

Your business partner stole money from the company for her personal use. An employee emails confidential company information to his personal email so he can use it to start a competing company. A competitor hires away an employee and uses confidential company information stolen by the employee. The company bookkeeper intentionally issues additional paychecks in his name they haven’t earned.

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Why I Don’t Write Demand Letters

Occasionally, a potential client calls me and asks if I would “just write a demand letter” to the recalcitrant company or person on the other side of a dispute. I don’t do this. When I’m hired to pursue a claim for a client, I will rarely send a demand letter before filing the lawsuit. The reason is simple: it’s a waste of time and frequently puts clients at a disadvantage.

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3-Things Never to Include in an Operating Agreement

Fire Alarm

An Operating Agreement that includes three things is destined to cause problems. My practice is 100% litigation and trial of business and commercial disputes. However, I have had the same conversation with new clients hundreds of times about how they ended up in my office. Many cases that end up in litigation were destined for…

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Can I sue a dissolved company?

Suing a dissolved company.

A dissolved company can be sued. Under C.R.S. §7-80-803, a dissolved limited liability company continues in existence for the purpose of winding up its affairs and discharging of liabilities. Corporations similarly continue their existence for winding up the affairs of the company. The dissolution only prohibits the company from engaging in future transactions – not…

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Frivolous Lawsuits Defense

Frivolous Lawsuits

For a small business a frivolous lawsuit is not just a nuisance. If it’s not handled competently and efficiently – it can significantly impact profitability. There have been several noteworthy frivolous lawsuits reported. People contesting the authority of the U.S. Government to levy an income tax (the 16th Amendment is pretty clear on this). The lawsuit…

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Business about to be sued? Here’s what to do.

Don’t panic. I’m not sure there are many situations where falling into a panic is useful. But, it’s definitely not helpful if you think you’ll be sued. Keep a level head. You’ll get through this. Don’t be an Enron. In the days leading to the collapse of the energy and commodities behemoth Enron, the company and…

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Credibility in the Courtroom

I was in a mediation recently with a retired judge as the mediator. He is a respected jurist that served for more than 40-years in various judicial roles. During the downtime between the long back and forth of the mediation, we talked about his time on the bench, the cases he decided and the lawyers…

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Real Estate Deals Gone Bad

  While most people today use a mortgage to purchase commercial and residential real estate, there is an anachronism still used today to buy real estate without a mortgage. It’s commonly referred to as a “contract for deed”, “installment land contract” or sometimes a “land sale contract.” The purpose of these real estate agreements is…

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