Case Law Summaries

Tennessee – Charging Order

Peach Reo, LLC v. Rice, No. 2:12-cv-02752, decided 7/11/17. The U.S. District Court, Western District of Tennessee granted a motion for a charging order against the interests of the debtor member in six LLCs.  The court rejected the member’s argument that a charging order was inappropriate because the operating agreements required consent before a member could assign its interests.  The governing LLC statutes provide that a charging order is a lien – which is an interest in the property of another - and not an assignment of the interest.

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