Benjamin v. Island Management, LLC

Summary

The court affirmed an order requiring a manager-managed LLC to provide a member with specified books and records. It held that the LLC inspection statute does not require a member investigating possible mismanagement to present credible proof of wrongdoing, although the court may limit requests that are insufficiently specific, burdensome, or not directly connected to a proper purpose. The court also upheld the inspection order because the requested information was sufficiently connected to the member’s purposes, the general-ledger request was reasonably particular, and the operating agreement independently supported access to employee-compensation information.