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New York — Jacobs v. Cartalemi, 2017 N.Y. Slip Op. 08506, decided 12/6/17.  The New York Supreme Court, Appellate Division held that an LLC member who withdraws from an LLC while his derivative suit is pending loses standing to pursue the derivative causes of action.

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Nevada — Gardner v. The Eighth Judicial District Court of Nevada, 133 Nev. Adv. Rep. 89, decided 11/22/17. The Nevada Supreme Court held that the alter ego doctrine applies to Nevada LLCs even though there is no express statutory provision in LLC Act.  The court also held that while managers are not liable for the LLC’s debts based on their status as managers, they are liable for their own acts of negligence.

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New York — Davis v. Scottish Re Group Limited, 2017 NY Slip Op 08157, decided 11/20/17.  The New York Court of Appeals held that a Cayman Islands court rule pertaining to the filing of derivative suits was procedural, and therefore did not apply to a derivative action filed on behalf of a Cayman Islands company in New York.

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Arkansas — Ashley Bancstock Co. v. Meredith, 2017 Ark. App.

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Louisiana - S.E. Property Holdings, LLC v. Chunn, No.

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Mississippi — Howarth v. M&H Ventures, LLC, No. 2016-CA-00742, decided 11/2/17.  The Mississippi Supreme Court ruled that an LLC that owned an airplane that crashed while being piloted by its sole member could not be held liable for the pilot/member’s wrongful death.  The state’s comparative negligence statute prevents a plaintiff from recovering for injuries attributable to the injured person and the LLC could only act through its sole member.

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Delaware — Gramercy Emerging Markets Fund v. Allied Banks, PLC, No. 49, 2017, decided 10/27/17. The Delaware Supreme Court ruled that where a Delaware action was not first filed but where the predecessor is no longer pending, Delaware courts should exercise discretion and dismiss for forum non conveniens when the Cryo-Maid factors weigh in favor of dismissal.

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The Ohio Court of Appeals ruled that an Illinois corporation could not maintain a counterclaim because it failed to obtain a license to do business with the Secretary of State.

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California — Davis Test Only Smog Testing v. Department of Consumer Affairs, C079354 (decided 9/28/2017).  The California Court of Appeal ruled that a corporation’s due process rights were not violated by its being represented at an administrative hearing by a former corporate officer who was not an attorney where the corporation elected to be represented by that officer.

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Nevada — Parametric Sound Corporation v. Eighth Judicial District, 133 Nev. Adv. Rep. 59 (decided 9/14/17).  The Nevada Supreme Court adopted Delaware’s direct harm test to distinguish between direct and derivative claims.  This test allows a direct claim when the shareholder’s injury is independent from the corporation’s injury.

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