October 27, 2010
On October 27, 2010, BHGR filed its Opening Brief and a request for oral argument in the Colorado Supreme Court in one of its business law cases. In that case, Colorado's highest Court will consider and decide the following issues which will create new state law precedent:
Issue 1: Whether the creditors of a limited liability company have standing to sue individual members of the LLC who have allegedly received an unlawful distribution under section 7-80-606, C.R.S. (2009), the Colorado Limited Liability Company Act.
Issue 2: Whether the court of appeals erred in extending the limited common law fiduciary duty which directors of insolvent corporations owe to an insolvent corporation's creditors to managers of LLCs.
The opposing party will file its Answer Brief in the next thirty days after which BHGR will file a Reply Brief. Once the case is submitted, the parties will await notification from the Court that the matter has been set for oral argument. Partners Giovanni Ruscitti of BHGR's Business Law group and Heidi Potter of BHGR's Appellate Law group are handling the appeal with the assistance of Associate Jack Storti.
For more information concerning this issue, you may download an in-depth article written by Herrick K. Lidstone, Jr. and published in The Colorado Lawyer, August 2010, Vol. 39, No. 8.