Lauderhill LLC Member Dispute Attorney
Most owners who come to us in a fight over an LLC want one of three outcomes: to get out with fair value, to force the company back on a workable footing, or to stop another member from draining it. The Andrew M. Schwartz Legal Team handles business divorce, operating agreement breaches, and deadlocked management for LLC members in Lauderhill, throughout Broward County, and across Palm Beach County and the rest of South Florida. If you need a Lauderhill LLC member dispute attorney, the first job is to work out which of those outcomes your facts and your operating agreement will actually support.
LLC disputes are decided far more by paper than by feelings. Florida’s Revised Limited Liability Company Act supplies default rules, but the operating agreement usually overrides them, and the agreement’s buyout formulas, voting thresholds, transfer restrictions, and dispute clauses often decide who holds leverage before a lawsuit is ever filed. Whether the company is a Lauderhill retail or service business, a property-holding entity, or an investment vehicle with out-of-state members, the same questions come first. Who controls day-to-day decisions? Where did the money go? What does the agreement say about leaving, and what does the statute say if the agreement is silent?
Why Choose the Andrew M. Schwartz Legal Team for an LLC Member Dispute
The Andrew M. Schwartz Legal Team represents business owners, investors, and families in South Florida’s difficult business and real estate disputes, serving Lauderhill, Fort Lauderdale, Boca Raton, West Palm Beach, and the surrounding communities of Broward and Palm Beach Counties. Our work centers on conflicts between partners, LLC members, and shareholders: deadlocked management, buyouts, valuation disputes, breaches of operating agreements, breach of fiduciary duty, and judicial dissolution. We also represent clients from New York, New Jersey, and Connecticut who hold interests in South Florida companies and property, and we handle the local court appearances so they are not traveling for every hearing.
Andrew M. Schwartz, Founder, has spent 37 years in litigation. He was admitted to The Florida Bar in 1989, earned his undergraduate degree from Emory University in 1986 and his law degree from the University of Miami in 1989, and has built his practice around complex contract disputes and business divorces. Sundeep Nath, Senior Counsel, is 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 can end up in the Seventeenth Judicial Circuit in Broward County, the Fifteenth Judicial Circuit in Palm Beach County, or the U.S. District Court for the Southern District of Florida when the parties or claims support federal jurisdiction.
The firm practices as a true team, so everyone working on your file knows it and can answer when you call, and we keep a strict 24 hour return call policy. Our attorneys are experienced in mediation and arbitration as well as courtroom litigation. For trial credibility, in 2024 a Broward County circuit court issued a 32-page final judgment after a five-day bench trial, awarding our client specific performance of a commercial real estate contract. We use that same preparation, working from the exact wording of the documents and the history of the parties’ dealings, when an operating agreement is the center of the case. Many of our matters also come from referrals by other attorneys, and we keep referring counsel informed throughout.
Types of LLC Member Disputes We Handle
- Management Deadlock: Two 50/50 members who cannot agree on a lease, a major purchase, a hire, or whether to sell leave the company unable to act. Florida law lists deadlock with threatened irreparable injury as a ground for judicial dissolution, and some operating agreements contain their own deadlock sale mechanism that can displace the court process if it is started in time.
- Minority Member Oppression and Freeze-Outs: A controlling member cuts a minority owner out of information, distributions, or decisions. Remedies can include an accounting, a court-ordered buyout of the petitioner’s interest, a custodian or receiver, or dissolution.
- Missing or Diverted Company Funds: Unpaid distributions, personal expenses run through the company, commingled accounts, or a manager who cannot account for money. Claims include breach of fiduciary duty, an accounting, and recovery of funds, and Florida allows dissolution where assets are being misappropriated or wasted and injury results.
- Operating Agreement Breaches: Violations of transfer restrictions, capital call terms, non-compete or non-solicitation clauses, consent requirements, or buyout procedures. These cases usually turn on precise contract language.
- Valuation and Buyout Fights: Members agree someone should leave but not on what the interest is worth, or the agreement’s formula is ambiguous or outdated. Disputes over goodwill, discounts, and which financial records count are common.
- Family and Friend-Run LLCs: Siblings, spouses, in-laws, and longtime friends who co-own a company often have thin or no written governance. These cases need discretion alongside firm protection of the client’s financial position.
- Real Estate-Holding LLCs: Members who own property through an entity may face both a member dispute and a question about the property itself, including partition or title issues when the ownership structure is unclear.
- Emergency Asset Protection: When a member is moving, spending, or encumbering company assets, temporary and permanent injunctions can freeze the situation while the case is pending.
What to Do Right Now When Your LLC Partnership Breaks Down
Start by getting the documents in one place: the articles of organization, the operating agreement and every amendment, tax returns, bank and credit card statements, capital contribution records, distribution history, meeting minutes, and the emails or texts that show how decisions were actually made. Do this lawfully. Collect what you already have a right to see, and do not log into accounts or take records you are not entitled to access. Members generally have information rights under Florida’s LLC statute, and a refusal to produce records is itself evidence worth preserving.
Read the operating agreement before you send an angry message or make a move. Look for buyout and valuation formulas, notice and cure provisions, deadlock procedures, arbitration or mediation clauses, venue and attorney’s fee provisions, and any restriction on transferring or withdrawing your interest. A deadlock sale clause that is started before a court finds grounds for dissolution can control the outcome, so timing and sequencing can matter. If the agreement requires mediation or arbitration first, skipping that step can derail a lawsuit.
Watch the clock. A claim on a written contract, which includes most operating agreement claims, carries a five-year limitations period in Florida, while oral or implied agreements carry four years. Fraud claims run four years from discovery, subject to a 12-year outer limit. An action seeking specific performance has only a one-year period. Because different theories in the same dispute can run on different clocks, delay can quietly eliminate some of your claims.
If money is leaving the company or assets are being transferred, say so early, because emergency relief depends on prompt action. Do not confront the other member in writing in ways that invite a transfer of funds, and do not stop performing your own duties under the agreement, which can hand the other side a breach claim. If you serve as a manager, be careful about your own fiduciary duties while the dispute plays out.
Where a case is filed depends on the company, the parties, and the amount at stake. Claims above the county court limit go to circuit court. For a Lauderhill company, that is typically the Seventeenth Judicial Circuit in Broward County, which maintains complex business divisions for large business disputes and certain entity dissolutions. If members or assets are centered in Palm Beach County, the Fifteenth Judicial Circuit may be the proper forum. Many of these disputes resolve through mediation or a negotiated buyout, and we pursue the path that serves your goals and your budget rather than extending a case for its own sake.
How Florida Courts Handle Dissolution, Receivers, and Buyouts
In a proceeding brought by a manager or member, Florida’s LLC Act allows a circuit court to dissolve the company on several grounds: the company’s activities are being conducted unlawfully; it is not reasonably practicable to carry on the business consistent with the articles and operating agreement; controlling managers or members have acted, are acting, or are reasonably expected to act illegally or fraudulently; assets are being misappropriated or wasted to the company’s injury; or managers or members are deadlocked, cannot break the deadlock, and irreparable injury to the company is threatened or occurring. These are demanding standards, and the facts you can prove matter more than the strength of your frustration.
Dissolution is not the only outcome, and often not the most useful one. On a showing of sufficient merit, the court can appoint a receiver or custodian or order a purchase of the petitioning member’s interest. Before appointing a receiver or custodian, the court must hold a hearing after notice to the parties and any interested person it designates. In some disputes, the threat of a court-supervised process pushes the parties toward a buyout on negotiated terms, which keeps the business alive for the member who stays and gives the departing member fair value.
If your entity is a corporation rather than an LLC, a parallel framework exists for shareholders. The corporation or other shareholders can elect to purchase the petitioning shareholder’s shares at fair value, and if the parties agree on value and terms within 60 days of the first election, the court enters an order directing the purchase. Such an election is irrevocable unless the court finds it equitable to set it aside or modify it. During either type of proceeding, the court can issue injunctions and preserve assets while the case is pending, which is often what a member watching money disappear needs most.
Frequently Asked Questions About LLC Member Disputes
What counts as an LLC member dispute?
It is any conflict among the owners of a limited liability company over management, money, ownership, or the company’s future. Common examples include deadlocked decisions, a member who is excluded from information or distributions, disagreements over buyout price, and claims that a manager breached fiduciary duties or the operating agreement.
Can I force a business partner out of an LLC in Florida?
It depends on the operating agreement and the conduct involved. Many agreements include buyout, expulsion, or dissociation provisions, and Florida law provides remedies when a member has engaged in serious misconduct or the company can no longer function. An attorney needs to read your agreement to tell you which routes are open.
What if our LLC has no written operating agreement?
Florida’s default statutory rules fill the gaps, but those defaults may not match what the members assumed. A missing or incomplete agreement often makes disputes harder, because the parties’ course of dealing and informal understandings become central evidence. Oral agreements among members are generally subject to the four-year contract limitations period.
What can I do if another member is taking company money?
You may have claims for breach of fiduciary duty, an accounting, conversion, and recovery of funds. If assets are being moved or spent, a court can issue injunctive relief to stop it while the case proceeds, and misappropriation or waste of assets is also a statutory ground for judicial dissolution.
How long do I have to bring a claim against another member?
For claims founded on a written instrument such as an operating agreement, Florida allows five years. Claims on oral or implied contracts carry four years, fraud carries four years from discovery with a 12-year cap, and specific performance carries one year. Different claims in one dispute can run on different clocks, so the earliest deadline controls your planning.
Is a judge going to dissolve my LLC just because we disagree?
No. Disagreement alone is not enough. The statute requires specific grounds, such as an actual deadlock with threatened irreparable injury, misappropriation or waste of assets, illegal or fraudulent conduct, or that carrying on the business under the operating agreement is not reasonably practicable. Courts also have intermediate remedies, including custodians and buyout orders.
Does a deadlock buyout clause in my operating agreement change the court process?
It can. Under Florida’s LLC statute, a deadlock sale provision that is initiated before the court finds deadlock grounds applies in place of a dissolution order or a court-ordered purchase, as long as it is then carried through. That makes it important to know what your agreement says before anyone files suit.
Will my dispute be heard in Broward County or Palm Beach County?
That depends on where the company is located, where the members and assets are, and what the operating agreement says about venue. A Lauderhill company’s case commonly belongs in the Seventeenth Judicial Circuit in Broward County, while a company tied to Palm Beach County may belong in the Fifteenth Judicial Circuit. Some disputes can also reach the U.S. District Court for the Southern District of Florida.
Do I have to go to court, or can this be settled?
Many member disputes settle through negotiation, mediation, or arbitration, particularly when both sides want to avoid freezing the business. Some operating agreements require alternative dispute resolution before suit. We prepare each case as if it may be tried, because that preparation is what produces credible settlement terms.
I live in New York or New Jersey but own part of a South Florida LLC. Can you handle this?
Yes. We regularly represent members from New York, New Jersey, and Connecticut in disputes with South Florida co-owners. We handle the Florida court proceedings and keep you informed so you do not have to travel for every hearing.
Is it worth hiring a lawyer for a smaller LLC dispute?
Often the answer depends on the operating agreement and what is really at stake, including your ownership value, ongoing income, and exposure to claims. An early review can show whether a negotiated exit, a demand letter, or litigation makes economic sense, and it often prevents a small disagreement from escalating.
Serving LLC Members From Lauderhill Across South Florida
We represent LLC members in Lauderhill and the neighboring Broward County communities of Lauderdale Lakes, Plantation, Sunrise, Tamarac, North Lauderdale, Margate, Coconut Creek, Coral Springs, Pompano Beach, Oakland Park, Fort Lauderdale, Hollywood, Davie, and Weston. Our reach continues north into Palm Beach County, including Boca Raton, Delray Beach, Boynton Beach, Lake Worth Beach, West Palm Beach, Wellington, and Palm Beach Gardens. Whether the company operates out of a Lauderhill commercial corridor, holds rental property in Broward, or has members scattered across several counties, we can advise on the dispute and handle the proceedings. We also serve out-of-state members, including clients from New York, New Jersey, and Connecticut, who hold interests in South Florida businesses and real estate.
Speak With a Lauderhill LLC Member Dispute Attorney
When a co-owner is blocking decisions, withholding money, or leaving you with a stake you cannot sell or control, the sooner your documents and deadlines are reviewed, the more options you keep. Our Lauderhill LLC member dispute attorney team can look at your operating agreement, explain whether your best path is a negotiated buyout, mediation, injunctive relief, or litigation, and tell you plainly what the process will involve. Call the Andrew M. Schwartz Legal Team to schedule a consultation.