Bernards v. Summit Real Estate Management, Inc.

Plaintiffs are members of two limited liability companies (LLCs), each of which owns an apartment complex. They brought this derivative action in the name of the LLCs against the other members (member defendants), arguing that member defendants breached a duty to the LLCs by refusing to take legal action against the company that managed the apartments and one of its officers who had embezzled LLC funds. Plaintiffs argue that the trial court erred in dismissing plaintiffs’ complaints and, in the alternative, in dismissing them with prejudice. They also appeal the adverse award of attorney fees…