Coco Investments, LLC, and other investors participated in a condominium convers
ID: 349384 • Letter: C
Question
Coco Investments, LLC, and other investors participated in a condominium conversion project to be managed by Zamir Manager River Terrace, LLC. The participants entered into a new LLC agreement for the project. The investors subsequently complained that Zamir had failed to disclose its plans for dramatic changes involving higher-than-expected construction costs and delays. They also claimed that Zamir had failed to provide financial information and had restructured loans in a manner that allowed Zamir representatives to avoid personal liability. The investors sued Zamir on various grounds, including breach of contract and breach of fiduciary duty. Zamir moved for summary judgment.
How should the court rule? Explain in IRAC format for legal reasoning.
Explanation / Answer
Legal Reasoning:
Issue:
· Coco Investments, River Terrace Limited Liability Company a real estate company and other investors participated in a building conversion project
· It was supposed to be managed by Zamir, Manager, River Terrace, LLC.
· All the participants entered into a new LLC agreement for the project, a Legal document which typically contains:
- the purpose of the business
- who and all managers the project
- how cost and revenues are dealt with
- Communication and handling of issues
· The investors complained that lack of communication and disclosure by Zamir about plans for dramatic changes which was involving higher-than-expected construction costs and time delays.
· They also claimed that Zamir had failed to provide financial information and had restructured loans in a manner that allowed Zamir representatives to avoid personal liability
· Finally the investors sued Zamir on various grounds, including
- breach of contract which means to break the agreed terms and
- breach of fiduciary duty which means it is ones responsibility to act honestly towards the other parties
Rule: Now the court will take up this case by
- Looking into the agreement
- Looking into the breach and failures
- Looking into fiduciary duties ect
- Will give the chance to defendant to prove non guilty
- Finally will try to solve the issue at claims court level
Analysis: After analyzing the court would come up with
- Compensatory or punitive damages to the investors by LLC
- Will ask to perform the specific performance which was missed out
Conclusion:
- Finally if evidence and agreement not strong, the court would also cancel the case.