Can my 50/50 partner in our LLC engage in a lawsuit against a company we represent without my consent?

UPDATED: Sep 30, 2022

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Can my 50/50 partner in our LLC engage in a lawsuit against a company we represent without my consent?

My partner is adamant on suing a company we represent. I don’t think the
lawsuit is winnable. Can he do so on our behalf without me agreeing to it?

Asked on December 20, 2016 under Business Law, Washington


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Assuming that you do not have an LLC agreement (e.g. an operating agreement) giving him more authority than you, then he can't do this without your consent, just as you cannot make decisions without his consent: as 50-50 owners, your power is exactly equal and either can block the other. That, in fact, is the problem with 50-50 ownership: it is prone to stalemate.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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