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

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.


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