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Ex Post Facto LLC Resolution attempting to defraud me.

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HawaiiKine

Junior Member
What is the name of your state (only U.S. law)? Hawaii.

Sorry this is a bit lengthy.

I own a share in a 5-member LLC that has had a stormy history, with lots of internal conflict and disagreement. The LLC owns a piece of land and ownership in the LLC includes residence privileges on the property. Due to a conflict over the past year involving a dispute over who was actually the LLC manager, and who should legally handle the funds, I chose to withhold payment of my $600 annual dues pending clarity as to who I should actually be paying the dues to.

The LLC operating agreement does not include any regulations regarding the late payment of dues...no consequences for late payment are mentioned whatsoever, or have ever been stipulated. A month ago, the current LLC manager informed me that I needed to pay the dues by July 1. I agreed to do so because I felt that the situation had stabilized sufficiently for me to feel comfortable paying the dues and that they would not be mishandled. On July 1 I went into the bank to do a same day wire transfer to the LLC account. Upon attempting to do so, I discovered that the transfer information that the manager had given me was incomplete and incorrect. Therefore, I was not able to make the transfer that day.

The next day, I chose to send a Western Union transfer (Money-in-Minutes) to the LLC manager, for the full amount, so that the issue would be resolved. My dues were therefore paid on July 2.

The next LLC monthly meeting is in a couple of days and I see that there has been a resolution added to the agenda proposing that if dues are not paid by July 1 of each year (which would make them approximately 6 months late) the member will lose privileges, including residence privileges, for the full year (from July 1-July 1).

My question is, can they attempt to apply this resolution ex post facto to me, even though I paid my dues before this resolution was even proposed or voted on? I fear that they will attempt to do so, because they hold animosity against me because I didn't take their side during the disputes regarding managership.

If they did, would I have grounds for a lawsuit against them for fraudulently attempting to revoke my residence privileges based on the retroactive application of this resolution? Is it relevant that I attempted to transfer the funds on July 1, but they had not given me the correct transfer information?

I do not know for a fact that they will attempt to do this, but I am very concerned that they might, because the timing of the resolution is very suspicious. I don't know how to handle it if they do. Do I immediately threaten to take legal action if they attempt to do this? Is it legal for them to attempt such a thing? I don't know if ex post facto regulations apply to internal LLC business operations.

Any advice or insight is greatly appreciated. Thank you so much for reading this far.
 


latigo

Senior Member
What is the name of your state (only U.S. law)? Hawaii.

Sorry this is a bit lengthy.

I own a share in a 5-member LLC that has had a stormy history, with lots of internal conflict and disagreement. The LLC owns a piece of land and ownership in the LLC includes residence privileges on the property. Due to a conflict over the past year involving a dispute over who was actually the LLC manager, and who should legally handle the funds, I chose to withhold payment of my $600 annual dues pending clarity as to who I should actually be paying the dues to.

The LLC operating agreement does not include any regulations regarding the late payment of dues...no consequences for late payment are mentioned whatsoever, or have ever been stipulated. A month ago, the current LLC manager informed me that I needed to pay the dues by July 1. I agreed to do so because I felt that the situation had stabilized sufficiently for me to feel comfortable paying the dues and that they would not be mishandled. On July 1 I went into the bank to do a same day wire transfer to the LLC account. Upon attempting to do so, I discovered that the transfer information that the manager had given me was incomplete and incorrect. Therefore, I was not able to make the transfer that day.

The next day, I chose to send a Western Union transfer (Money-in-Minutes) to the LLC manager, for the full amount, so that the issue would be resolved. My dues were therefore paid on July 2.

The next LLC monthly meeting is in a couple of days and I see that there has been a resolution added to the agenda proposing that if dues are not paid by July 1 of each year (which would make them approximately 6 months late) the member will lose privileges, including residence privileges, for the full year (from July 1-July 1).

My question is, can they attempt to apply this resolution ex post facto to me, even though I paid my dues before this resolution was even proposed or voted on? I fear that they will attempt to do so, because they hold animosity against me because I didn't take their side during the disputes regarding managership.

If they did, would I have grounds for a lawsuit against them for fraudulently attempting to revoke my residence privileges based on the retroactive application of this resolution? Is it relevant that I attempted to transfer the funds on July 1, but they had not given me the correct transfer information?

I do not know for a fact that they will attempt to do this, but I am very concerned that they might, because the timing of the resolution is very suspicious. I don't know how to handle it if they do. Do I immediately threaten to take legal action if they attempt to do this? Is it legal for them to attempt such a thing? I don't know if ex post facto regulations apply to internal LLC business operations. (?) . . . .
What "internal LLC business operations"?

And who were the idiots that decided to manage the joint ownership and use of land through a limited liability company and think they are running a time-share and a corporation by passing “resolutions”? Stupid!

See your business lawyer and have him examine the Articles and the Operating Agreement and what ever gimmicks they’ve come up with.

You may want to consider dissolution forcing a sale of their precious parcel of lava and sand, which won't be around after the tsunami anyhow.
 

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