I May Be Lost But I'm Making Great Time: The Failure of Olmstead to Correctly Recognize the Sine Qua Non of the Charging Order

7 Pages Posted: 30 Nov 2010

Date Written: November 29, 2010

Abstract

The recent decision of the Florida Supreme Court in Olmstead v. Federal Trade Commission has been widely discussed and oft condemned. In that decision, the Court held that, under Florida law, a charging order issued against a member's interest in a limited liability company is not the exclusive remedy available to the member's judgment creditor. Unfortunately, the Olmstead Court then engaged in a discussion of the basis for the charging order, justifying its narrow holding on statutory construction with a normative analysis of the charging order in the context of LLCs in general and single-member LLCs in particular. Ultimately, the Court determined that not restricting the judgment creditor to the charging order was permissible because there was no violence done, in the context of a single-member LLC, to the in delectus personae rule embodied in the LLC Act, other members being a null set.

Suggested Citation

Rutledge, Thomas E., I May Be Lost But I'm Making Great Time: The Failure of Olmstead to Correctly Recognize the Sine Qua Non of the Charging Order (November 29, 2010). Journal of Passthrough Entities, November-December 2010, Available at SSRN: https://ssrn.com/abstract=1716970

Thomas E. Rutledge (Contact Author)

Stoll Keenon Ogden PLLC ( email )

2000 PNC Plaza
500 West Jefferson Street
Louisville, KY 40202-2828
United States

HOME PAGE: http://skofirm.com

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