Charging Order Exclusivity: A Pragmatic Approach to Olmstead v. Federal Trade Commission
22 Pages Posted: 6 Feb 2011
Date Written: January 29, 2011
The article analyzes Olmstead v. Federal Trade Commission, the recent Florida Supreme Court case concerning whether a charging order is the exclusive remedy by which a member's creditor can obtain the member's interest in a Florida single member limited liability company. It concludes that the Olmstead holding - that the charging order is non-exclusive - is grounded in historical "pick-your-partner" principles. It then suggests a framework for balancing creditors' rights and member autonomy principles in limited liability companies and other unincorporated business organizations.
Keywords: charging order, creditor rights, limited liability company, partnership, limited partnership
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