Case Law Summaries

Utah - Member Authority to Retain Counsel for LLC

UtahSumsion v. Bay Harbor Farm, 2018 UT App 114, decided 6/14/18. The Utah Court of Appeals held that a member owning 45% of an LLC lacked authority to retain counsel to represent the LLC where the LLC law required two-thirds approval of actions not in the ordinary course of business.  Therefore the LLC was not a client and did not breach the engagement agreement by failing to pay the attorney’s fees.

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