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 any statutory provision authorizing such actions. The Court based its decision on longstanding common‑law derivative‑suit principles and rejected the view that legislative silence prohibited the remedy.