New York Court of Appeals
Soterios (Steve) Tzolis
February 14, 200810 N.Y.3d 100
Summary
The New York Court of Appeals affirmed the Appellate Division, holding that members of a limited liability company may bring derivative suits on the LLC's behalf despite the absence of a statutory provision. The Court relied on the long‑standing equity principle of derivative actions and concluded that legislative silence does not prohibit the remedy. Justice Read dissented, arguing that the majority read into the Limited Liability Company Law a right the Legislature deliberately omitted.