Magruder v. Pauley

GARY D. WITT, Judge.

Introduction

Four real estate agents formed a limited liability company and jointly owned a real estate franchise. When one member, Diane Magruder (“Magruder”), withdrew from the company, the others refused to comply with the existing Operating Agreement which required that the remaining members obtain an appraisal of the company and then pay the withdrawing member twenty-five percent of the appraised value. Early in the litigation, a bench trial was held after which the court granted specific performance of the contract to Magruder. Later, a jury awarded damages to…