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Court of Chancery Explains How To Defend In A Deadlock

Posted In LLC Agreements

Maitland v. International Registries, LLC, C.A. 3669-CC (Del. Ch. June 6, 2008)

It often occurs in a dispute between the owners of a closely held corporation or LLC that no one has enough votes to decide who should be counsel to the entity in the litigation. This decision explains how to deal with that problem. The answer is for the owner or group of owners who are not the plaintiff to intervene in the litigation to act on behalf of the entity. This avoids the tough issue of who pays the attorneys’ fees for the entity as the intervener pays her own counsel.