UNREPORTED CASES
"2 Due to irreconcilable differences, Petitioner sought dissolution of the Company and entered arbitration as provided for in the Company's Operating Agreement.3 The arbitration tribunal issued a decision on liability (the "LiabilityDecision") and a decision and final award (the...
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Veröffentlicht in: | The Delaware journal of corporate law 2022-01, Vol.46 (3), p.563-636 |
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Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | "2 Due to irreconcilable differences, Petitioner sought dissolution of the Company and entered arbitration as provided for in the Company's Operating Agreement.3 The arbitration tribunal issued a decision on liability (the "LiabilityDecision") and a decision and final award (the "Final Award"),4 which Petitioner sought to enforce in this court.5 On December 4, 2020, the court confirmed the results of the arbitration proceeding and ordered that the Company be wound up and dissolved.6 On February 9, 2021, the court appointed Gary Seitz as Liquidating Trustee.7 The Liquidating Trustee recovered $68,136.47 and submitted the Report on December 20, 2021.8 The Report recommended that the court order the Liquidating Trustee to pay the recovered sum as follows: $26,702.00 in fees and $262.29 for expenses to the LiquidatingTrustee; $35,514.37 in unpaid salary to Eugene Grace; and the remaining balance of $5,657.85 to the Company's landlord, Rosetree KPG III, LLC (the "Landlord").9 The Liquidating Trustee further concluded that although he may be able to obtain additional recovery, "the meager sums obtained through the liquidation and the lack of interest of anycontingent fee firms known to the Trustee prevent the ability to mount any liquidation litigation in this case. Petitioner asserts that the Liquidating Trustee improperly subordinated its claims based upon an unsupported assertion by Respondent.30 Petitioner notes that the Final Award (i) found that Petitioner was entitled to a credit of half of $297,000 for payments it made to subcontractors31 and to $275,000 in fees paid to the Company,32 and (ii) awarded Petitioner $30,000, which was the administrative fee stated in the operating agreement.33 Petitioner selects too carefully from the Liability Decision and Final Award, omitting adverse facts and findings that cut against Petitioner's position. "40 During the time period when Petitioner failed to cooperate in communications concerning terminating the lease, the Company remained a tenant but was unable to pay rent.41 The Company's failure to pay rent caused the Landlord to levy interest and penalty charges against the Company and file a breach of contract claim against the Company and Respondent.42 Summing it up, Petitioner was obligated to help terminate the existing lease.Petitioner's failure to cooperate contributed to additional liability. [...]it is appropriate to subordinate Petitioner's claims under one of two equitable doctrines-equitable subordinatio |
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ISSN: | 0364-9490 1943-7331 |