Michigan Laws 450.4514 – Termination of derivative proceeding; court order
Current as of: 2024 | Check for updates
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Terms Used In Michigan Laws 450.4514
- Member: means a person that has been admitted to a limited liability company as provided in section 501, or, in the case of a foreign limited liability company, a person that is a member of the foreign limited liability company in accordance with the laws under which the foreign limited liability company is organized. See Michigan Laws 450.4102
- Plaintiff: The person who files the complaint in a civil lawsuit.
If a derivative proceeding is terminated, the court may order 1 of the following:
(a) The plaintiff to pay any of the defendants’ reasonable expenses, including reasonable attorney fees, incurred in defending the proceeding if it finds that the proceeding was commenced or maintained in bad faith or without reasonable cause.
(b) The limited liability company to pay the plaintiff’s reasonable expenses, including reasonable attorney fees, incurred in the proceeding if it finds that the proceeding has resulted in a substantial benefit to the company. The court shall direct the plaintiff to account to the company for any proceeds received by the plaintiff in excess of expenses awarded by the court, except that this provision does not apply to a judgment rendered for the benefit of an injured member only and limited to a recovery of the loss or damage sustained by that member.