Management of LLCs By Non-Members

by William J. Piercy

In Internal Medicine Alliance, LLC v. Budell, 290 Ga. App. 231 (2008), two physicians, Budell and Verbitsky agreed to create a medical practice together.  They formed a new company, Internal Medicine Alliance, LLC, through which to run the business.  Although IMA’s Articles of Incorporation …



If a Building Falls Down But Nobody Hears It, Does It Make a Sound?

by William J. Piercy

In Nationwide Mortgage Services, Inc. v. Troy Langley Construction, Inc., 280 Ga. App. 539 (2006), Nationwide was a “hard money lender” in the business of making loans secured by residential properties.  Nationwide also rehabilitated and resold the properties that it acquired, often through the foreclosure process.  …


The Failure to Document Investment Dooms Venture

by William J. Piercy

Gardner v. Marcum, 292 Ga. App. 369 (2008).  Seeking funding to record and promote their music, musicians Gardner and Steele entered into discussions toward the possible investment of $150,000 from Marcum.  Although the details of the transaction were never finalized, Marcum provided $50,000 …


When is a Deal a Deal?

by William J. Piercy

Goobich v. Waters, 283 Ga. App. 53 (2006).  The Waters entered into negotiations to sell their nursery business to Goobich.  After protracted negotiations, the parties both signed a Letter of Intent (LOI) under which Goobich was to buy the business for $1,950,000 in …


Agreements to Agree are Unenforceable

by William J. Piercy

Business disputes often arise because amiable parties agree on a few matters, but leave an essential element of their deal to future negotiations by simply agreeing to agree on (often seminal issues) at a future date.  While this may smooth over a contentious issue temporarily, it does …


Be Careful What You Ask For

by William J. Piercy

Ervin v. Turner, 291 Ga. App. 719 (2008).  In this case, a group of investors came together and formed a limited liability company, Local MG, LLC (the “LLC”) for the purpose of raising sufficient funds to operate a bank to be known as …


Judicial Dissolution

by William J. Piercy

Judicial dissolution is the process through which the courts will wind up and liquidate a business entity such that its liabilities its assets are distributed to its owners, to the extent that there are assets with which to do so.  Judicial dissolution is often …


All for One and One for All?

by William J. Piercy

Many closely-held businesses are owned by a two or more individuals who are (or were) also friends, family members, or former co-workers.  Because of their prior relationship, these individuals enter into their business relationship with a certain amount of inherent trust.  Because they …


If It Looks Like a Duck, and Walks Like a Duck…

by William  J. Piercy 

Aaron Rents v. Fourteenth Street Venture, LP, 243 Ga. App. 746 (2000).  The Court of Appeals affirmed the trial court’s determination that a partnership existed where an association formed by agreement between a judgment debtor and another individual constituted a “partnership,” though the agreement referred to the …