Parkland LLC Member Dispute Attorney
Parkland owners who find themselves locked in a fight with a co-member over an LLC have a decision to make, and the order of the first few moves matters more than most people expect. The Andrew M. Schwartz Legal Team handles business and real estate litigation for owners, investors, and families in Parkland, the rest of Broward County, and neighboring Palm Beach County. A Parkland LLC member dispute attorney can tell you whether your operating agreement already contains the answer, or whether you need a court to supply one.
Most LLC fights in this part of Broward share a pattern. Two or three people formed a company, often to hold real estate, run a practice, or operate a local business, and the operating agreement was borrowed from a template or never signed at all. Years later, one member stops reporting numbers, another stops showing up, and a third wants out. The agreement, or the lack of one, decides almost everything that follows.
Florida’s LLC statute gives members real tools when a company breaks down, from judicial dissolution to a court-ordered buyout. Knowing which tool fits your facts is the difference between a clean exit and an expensive stalemate.
Why Choose the Andrew M. Schwartz Legal Team for Member Disputes in Parkland
The Andrew M. Schwartz Legal Team represents business owners, investors, and families in South Florida’s difficult business and real estate disputes, serving clients in Boca Raton, West Palm Beach, Fort Lauderdale, and throughout Broward and Palm Beach Counties. Founder Andrew M. Schwartz has spent 37 years in litigation and has practiced in Florida since being admitted to The Florida Bar in 1989. He earned his undergraduate degree at Emory University in 1986 and his law degree at the University of Miami in 1989. His career has centered on contract disputes, business divorces, and conflicts among partners, LLC members, and shareholders.
Andrew is joined by Senior Counsel Sundeep Nath, a Northwestern-trained litigator with years of experience in business and real estate cases in both state and federal courts. That matters in member disputes, which sometimes move between forums depending on who the parties are and what claims are pleaded.
The firm practices as a true legal team, so everyone working on your matter knows the file. Calls are returned within 24 hours under a strict policy, even when the attorneys are in court. The firm is also experienced in mediation and arbitration, and it looks for the resolution that fits a client’s goals and budget rather than stretching a case out for its own sake.
Recent results include a 32-page final judgment from a Broward County circuit court granting our client specific performance of a commercial real estate contract after a five-day bench trial. Many LLC disputes are, at bottom, fights over what a written agreement requires, and that is the kind of work the firm does.
Common Disputes Between LLC Members
- Deadlocked Management: Two 50 percent members disagree and nothing can be approved, from signing a lease to paying a vendor. Florida law allows a court to dissolve an LLC when members are deadlocked, cannot break the deadlock, and irreparable injury to the company is threatened or occurring.
- Missing or Diverted Funds: A manager cannot explain where company money went, personal expenses run through company accounts, or distributions stop without explanation. Claims can include an accounting, breach of fiduciary duty, and recovery of the funds.
- Freeze-Outs of Minority Members: A controlling member cuts out a minority owner from information, decisions, and distributions. Misappropriation or waste of company assets is itself a recognized ground for judicial dissolution.
- Buyout and Valuation Fights: A member wants out, or wants someone else out, and the two sides cannot agree on what the interest is worth. Florida’s statute allows a court to order a purchase of a petitioning member’s interest as an alternative to dissolution.
- Operating Agreement Breaches: A member ignores a capital call, competes with the company, transfers an interest in violation of the agreement, or skips required approvals. These cases often turn on the exact wording of the document.
- Family and Friend-Owned Companies: Siblings who inherited a business, spouses or in-laws holding membership interests, and old friends who never papered their deal. These disputes call for discretion alongside firm financial protection.
- Real Estate Holding LLCs: Members who own a Broward property through an LLC disagree about selling, refinancing, or leasing. Related claims can include partition, title disputes, and quiet title actions.
- Illegal or Fraudulent Control: Controlling members who have acted, are acting, or are reasonably expected to act illegally or fraudulently can expose the company to judicial dissolution.
What to Do Before the Dispute Hardens
Start by finding every governing document. That means the articles of organization, the operating agreement and every amendment, and any side agreement among members. If you cannot locate a signed operating agreement, say so early, because Florida’s default rules fill the gaps and they may not be what you assumed.
Next, check whether your agreement contains a deadlock sale, buy-sell, or expulsion provision. This is not a minor detail. Under the LLC statute, a deadlock sale provision that is initiated before a court finds deadlock grounds can take the place of a judicial dissolution order or a court-ordered buyout. Starting the contractual process, or failing to, can change which path you are on.
Gather financial records you are entitled to see: bank statements, tax returns, general ledgers, distribution histories, and capital contribution records. Do not take records you have no right to access, and do not delete anything. Preserve emails and texts among members, since they often show what the parties understood the deal to be.
Watch the clock. A claim founded on a written instrument, such as an operating agreement, has a five-year limitations period. A claim on an oral or implied agreement has four years. Fraud claims run four years from discovery, capped at 12 years. A specific performance action has just one year. Delay can quietly eliminate a claim that was strong when the problem first appeared.
As to forum, Parkland sits in Broward County, which is part of the Seventeenth Judicial Circuit. Disputes above the county court ceiling go to circuit court, and Broward’s complex business division handles matters such as dissolution of certain business entities and large business litigation. Cases can be filed directly into that division under the circuit’s administrative order, with the clerk randomly assigning the case to a division. Depending on the claims and parties, the U.S. District Court for the Southern District of Florida, which sits in Fort Lauderdale, may also be an option.
Finally, avoid the common mistakes: moving company funds to “protect” them, locking a co-member out of accounts without a legal basis, or signing a buyout term sheet before anyone has valued the company. If assets are at risk of being moved or spent, ask about emergency relief early.
How Florida Courts Dissolve or Unwind an LLC
Dissolution is the court’s most drastic remedy, and Florida’s statute lists specific grounds. A member or manager may petition when all or substantially all of the company’s affairs are conducted unlawfully, when it is not reasonably practicable to operate in line with the articles and operating agreement, when controlling members have acted or are expected to act illegally or fraudulently, when assets are being misappropriated or wasted to the company’s injury, or when members are deadlocked and irreparable injury is threatened or occurring.
Once a petition shows sufficient merit, the court has options short of ending the company. It may appoint a receiver or custodian after a hearing with notice to all parties and any interested person the court designates. It may instead order a purchase of the petitioning member’s interest. These middle-ground remedies are often where the real negotiation happens, because dissolution is costly for everyone.
If your company is a corporation rather than an LLC, a parallel framework applies. A shareholder petitioning for dissolution can trigger the corporation’s or other shareholders’ right to elect to buy the petitioner’s shares at fair value. The corporation must notify the other shareholders of that option within 30 days of the proceeding starting. If the parties agree on fair value and terms within 60 days after the first election is filed, the court enters an order directing the purchase, and an election to purchase generally cannot be undone unless the court finds it equitable.
Frequently Asked Questions About LLC Member Disputes
Can I sue another member of my LLC in Florida?
Yes. Members can bring claims for breach of the operating agreement, breach of fiduciary duty, an accounting, and recovery of misused funds, along with requests for dissolution or a buyout in appropriate cases. Which claims fit depends on your agreement and the facts.
What does “deadlock” mean for an LLC?
Deadlock means the managers or members cannot reach the decisions needed to run the company and cannot break the impasse. For a court to dissolve an LLC on this ground, irreparable injury to the company must also be threatened or occurring, not just disagreement.
Can a judge force one member to buy out another?
In a dissolution proceeding, a court may order a purchase of the petitioning member’s interest as an alternative to dissolving the company. Whether that is appropriate depends on the case, and a deadlock sale provision in your operating agreement may control first.
What if we never signed an operating agreement?
Florida’s LLC statute supplies default rules for governance, distributions, and member rights. Those defaults may not match what the members privately expected, which is why unsigned or incomplete agreements generate so many disputes.
How long do I have to file a claim?
For claims founded on a written agreement, five years. For oral or implied agreements, four years. Fraud is four years from discovery, with a 12-year cap. A specific performance action carries only a one-year period. Because the right deadline depends on the claim, have the facts reviewed promptly.
What can I do if a member is draining company accounts?
You may have claims for an accounting, breach of fiduciary duty, conversion, and recovery of the money. In urgent cases a court can issue injunctive relief and, after a hearing, appoint a receiver or custodian to preserve assets while the case proceeds.
Does a deadlock sale clause in my agreement override a lawsuit?
It can. If the clause is initiated before the court finds deadlock grounds and is then carried through, it applies in place of a judicial dissolution order or a court-ordered buyout. Timing and compliance with the clause’s terms are critical.
Should my case go to Broward’s complex business division?
That division handles matters such as dissolution of certain business entities and large business and construction litigation. Whether your case qualifies depends on its size and nature. Direct filing into the division follows a specific administrative procedure, and the clerk randomly assigns the case.
Is mediation worth trying before filing suit?
Often, yes. Member disputes frequently involve ongoing relationships, shared property, or a business that still has value only if it keeps operating. Mediation and arbitration can resolve valuation and buyout questions faster and more privately than a trial, though some situations, such as active fund diversion, call for court action first.
I own part of a Parkland LLC but live in New York or New Jersey. Can you handle it?
Yes. The firm regularly represents clients from New York, New Jersey, and Connecticut with business or real estate interests in South Florida, handles the local court appearances, and keeps you informed without requiring you to travel for every hearing.
My LLC owns real estate and members want different things. What are my options?
Depending on how title is held, options can include a negotiated buyout, a sale, or a court proceeding. Co-owners who hold real property directly can seek partition, where the court divides the property or orders it sold and divides the proceeds. Title disputes may call for a quiet title action.
Serving LLC Owners Across Parkland and Broward County
We represent LLC members in Parkland and throughout Broward County, including Coral Springs, Coconut Creek, Margate, Tamarac, Sunrise, Plantation, Weston, Pompano Beach, Deerfield Beach, Fort Lauderdale, Hollywood, and Davie. Parkland’s neighbors to the north in Palm Beach County are within our reach as well, including Boca Raton, Delray Beach, Boynton Beach, and West Palm Beach.
Broward’s civil cases are heard in the Seventeenth Judicial Circuit, and Palm Beach County’s in the Fifteenth. Our attorneys appear in both, as well as in federal court when a dispute calls for it. We also work with clients from New York, New Jersey, and Connecticut whose business partners or co-owners are here in South Florida, and with other attorneys who refer Florida business disputes to us.
Talk With a Parkland LLC Member Dispute Lawyer
An LLC dispute rarely improves with time. Records get harder to trace, positions harden, and limitation periods keep running. If you are in a standoff with a co-member over money, control, or an exit, the Andrew M. Schwartz Legal Team can review your agreement, explain whether a buyout, dissolution, or negotiated separation fits your situation, and move quickly if assets are at risk. Call to discuss your case with a Parkland LLC member dispute lawyer from our team.
