Impact of the Olmstead v FTC decision
Registration Date 8/23/2010
American Bar Association
Are Single-Member LLCs A Ticking Time-Bomb For Asset Protection?
The Florida Supreme Court's decision in Olmstead v. FTC held a charging order is not the exclusive remedy of a creditor of a member of a single-member Florida LLC.
This surprising decision allows a court to order a judgment debtor to surrender all right, title, and interest in the debtor's single member limited liability company to satisfy an outstanding judgment. This is another case that calls into question whether SMLLCs provide any asset protection for the member. A strongly worded dissent expressed concern this decision could impact multi-member LLCs in Florida.
During this program, our panel will discuss:
- The Olmstead majority and dissenting opinions
- Whether single-member LLCs are useful for asset protection, in light of Olmstead and prior decisions such as like Albright, A-Z Electronics, Modanlo, VData, Desmond, and Schwab.
- What these cases mean for companies that have utilized single-member LLCs rather than subsidiary corporations
- What State Legislatures might be expected to do
- The impact of the Olmstead decision on remedies pursued by creditors.
Christopher M. Riser, Riser Adkisson LLP, Athens, Georgia
T. Scott Tufts, Tufts Law Firm, PLLC, Maitland, Florida
Event Date & Time
Tuesday, August 24, 2010
1:00 PM - 2:30 PM Eastern
12:00 PM - 1:30 PM Central
11:00 AM - 12:30 PM Mountain
10:00 AM - 11:30 AM Pacific