Individual Parties Were Only Secondarily Linked To LLC Members.
In Lintz v. Blue Goose Development, Case No. G048325 (4th Dist., Div. 3 Apr. 24, 2015) (unpublished), a lower court denied an attorney’s fees request brought against two individually sued parties under an LLC operating agreement fees clause, which provided: “In the event that any action or proceeding is filed by any Member or by the Company as against the Company or any other Member to enforce any of the covenants or conditions hereof, the prevailing party shall be entitled to have and recover of [sic] and from the other reasonable attorneys’ fees.”
That conclusion held up on appeal. The reason was that although one party was the trustee of a Trust LLC member and another party was the custodian of another LLC member, these parties were sued individually, not in representative capacities, which meant they were not LLC members subject to fee exposure.