Hunter Three Farms, LLC
v.
Richard Hunter, individually and as a member of Hunter Three Farms, LLC
Richard Hunter seeks further review of a court of appeals decision reversing and remanding the district court’s grant of summary judgment in his favor. In agreeing with Hunter Three Farms, LLC, the court of appeals determined an LLC may sue one of its member-managers under exceptional circumstances if all disinterested members authorize litigation.
Appellant
Hunter Three Farms, LLC
Appellee
Richard Hunter, individually and as a member of Hunter Three Farms, LLC
Attorneys for the Appellant
Bradley M. Strouse
Adam J. Babinat
Attorneys for the Appellee
Spencer S. Cady
Brianna L. Long
Supreme Court
Oral Argument Schedule
15-15-5
Dec 18, 2024 9:00 AM
Briefs
Court of Appeals
Court of Appeals Opinion
Opinion Number:
Date Published:
Summary
Appeal from the Iowa District Court for Greene County, Derek Johnson, Judge. REVERSED AND REMANDED. Considered by Bower, C.J., and Buller and Langholz, JJ. Opinion by Buller, J. Dissent by Langholz, J. (29 pages)
Hunter Three Farms, an Iowa limited liability company (LLC), appeals from a district court ruling that granted summary judgment in favor of one of the company’s three member-managers. The district court concluded the LLC lacked standing to sue the member because bringing the claim required unanimous consent of all members and he did not consent to being sued. OPINION HOLDS: On appeal, we hold that an LLC may sue one of its members under exceptional circumstances if all disinterested members unanimously consent to litigation. We reverse and remand for further proceedings consistent with this opinion. DISSENT ASSERTS: By default under Iowa’s statute governing LLCs, an LLC must have “the consent of all members” to take the extraordinary action of filing suit against one of its members. Iowa Code § 489.407(2)(d). Because I would stick with the text of the statute rather than marking it up with an exception of our own creation, I respectfully dissent.