Rands, LLC v. Young (In Re Young)

OPINION

RAYMOND T. LYONS, Bankruptcy Judge.

INTRODUCTION

The Plaintiff, RANDS, LLC, seeks to have certain claims arising from a series of disbursements made to the Defendants from the LLC found non-dischargeable. The Defendants moved to dismiss arguing the majority of the Plaintiffs claims are time barred by a three-year statute of limitations which applies to distributions made to members of an LLC.

This court finds the Defendants’ argument unpersuasive. The disbursements of funds at issue were not distributions but alleged misappropriations by a member of the LLC. Such transactions are of a…