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.
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