Weddell v. H20, Inc.

Respondent Michael Stewart and appellant Rolland Weddell entered into a business relationship concerning a number of different projects. After their business relationship collapsed, Weddell filed a complaint asserting numerous claims against Sewart. Stewart asserted numerous counterclaims. The district court found in Stewart's favor on all counts. The Supreme Court reversed in part, holding that pursuant to Nev. Rev. Stat. 86.401, a judgment creditor may obtain the rights of an assignee of the member's interest, receiving only a share of the economic interests in a limited-liability company, and thus, the judgment creditor and holder of a charging order against Weddell's membership interests was entitled to Weddell's economic interest in appellant Granite Investment Group, LLC but not Weddell's managerial rights. The Court affirmed in all other aspects, holding (1) parties should only file a notice of pendency when the action directly involves real property, and therefore, the notice of pendency filed by Weddell, which involved an option to purchase a membership interest in Respondent Empire Geothermal Power, LLC, was unenforceable; and (2) substantial evidence existed to support the district court's finding that Weddell had no ownership interest in respondent H2O, Inc. View "Weddell v. H20, Inc." on Justia Law