Racing Investment Fund 2000, LLC v. Clay Ward Agency, Inc.
Kentucky Supreme Court
320 S.W.3d 654 (Ky. 2010)
Relevant factsFree
Racing Investment Fund (defendant), by then defunct, failed to fully pay a judgment owed to its insurance agency Clay Ward (plaintiff), and the trial court ordered the judgment satisfied using the LLC's operating agreement provision requiring occasional member capital infusions for business expenses; the court of appeals affirmed.
IssueFree
Whether a standard capital-call provision in an LLC's operating agreement may be invoked to satisfy a judgment entered against the LLC.