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A cancelled California LLC participated in a Arbitration hearing

after it was cancelled requesting...
A cancelled California LLC participated in a Arbitration hearing after it was cancelled requesting that the arbitrator order that it be reinstated. And the arbitrator ordered that it be reinstated. Was this a lawful hearing? Please cite law that pertains to this event.
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Answered in 26 minutes by:
3/4/2013
Damien Bosco
Damien Bosco, Attorney
Category: Business Law
Satisfied Customers: 3,382
Experience: Helping you with your legal questions.
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Hi and Welcome! My name is XXXXX XXXXX will be assisting you. I am happy to help you. Please provide more information: When you say canceled, do you mean the LLC was dissolved? How or why was it dissolved? How did an arbitration come about? I will see if I can help. Regards, Damien
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Customer reply replied 4 years ago

yes it was dissolved, by its members because it was registered with the state of California inorder to use its name to file a law suit that had no merit and no basis in law, and the court later ruled that it had no merit and no basis in law. After this ruling it was dissolved by its members.


 


During the trial the LLC being the plaintiff created a settlement agreement that had a arbitration clause that stipulated if there was a disagreement it would be settled by the arbitrator that the LLC had handpicked. The majority of the members voted to desolive the LLC, but a non member who filed the original organization documents to start the organization process but never completed them, wanted to keep the LLC reinstated so he had the arbitrator sign a document to reinstate the cancelled LLC. and there was also a letter from the arbitrator asking to have a 2% interest in the assets of the LLC that he ordered to have reinstated.


 


 

Customer reply replied 4 years ago


I am still waiting on an answer

Hi John: Sorry for the delay. The whole episode sounds strange. How would the nonmember have standing to participate, would be one question. The other is how could an arbitrator take a percent interest in the subject LLC where he is the arbitrator? This sounds very unethical.

The first part sounds normal: the case settled and then any dispute over the settlement agreement would go to arbitration. But the facts you provide about the organizer reinstating the LLC and the arbitrator taking a percent share of the LLC sounds like a conflict of interest. I am not sure where to begin as to the statute or case law to support this position, but it appears quite obvious that there is a conflict and a standing issue. Usually, in these situations, the arbitrator's decision can be appealed if so egregious. I suppose you would have to start looking at the civil procedure of CA to determine how to appeal an arbitrator's decision. Would you like me to opt out to see if a local attorney from CA can direct you to the statute section, if any? I hope this helps you. Regards, Damien
Damien Bosco
Damien Bosco, Attorney
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Hi John,

I just want to thank you for giving me a positive rating. I am here to help you in the future also. You can request me by name the next time and I will be notified. Also, you can bookmark my profile and ask me a question that way. Here is the link:

http://www.justanswer.com/law/expert-damien-bosco/

Either way, I am always happy to help.

Best Regards!

Damien Bosco
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Customer reply replied 4 years ago

 


What does the statement mean “Fruit of the poison tree” mean?

Customer reply replied 4 years ago

 


A Title Company told me that a Grant Deed was recorded in the Los Angeles County Recorder’s Office that was defective, and did convey the title out of my name to the grantee. Because the name of the grantor was not the name the grantor received title to the property in.


 


This was a attempted thief of my property that failed to convey the property out of my name. Thank God.


 


However the thieves thought the property did transfer out of my name into the thieves name, and the thieves attempted to sale the property they did not own, they opened a escrow with the buyer and while in escrow they all found out that the thieves deed was defective and did not convey the title into the sellers names.


 


Question: Does the buyer have standing to sue the bogus seller for Quit Title to the property that the seller did not own, and has not ever own any interest in my property. Please cite the law on this issue

John:

Fruit of the poison tree means: evidence gathered with the assistance of illegally obtained information must be excluded from trial.

I am not sure as to your third question: Why would the buyer sue for quiet title when the buyer does not own the property because the seller never owned it. What are the buyer's damages if the buyer received the deposit back.

I do not practice criminal law, but it could be at the level of fraud reaching the criminal lever. You may want to speak to a criminal attorney or the DA's office.


Regards,

Damien

Damien Bosco
Damien Bosco, Attorney
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Damien Bosco
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