Corporate — LLC – Operating Agreement – Unwritten Amendment – Equity Interest

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The operating agreement for the plaintiff-limited liability company does not contain a rule of equal dignities, requiring amendments thereto to be in writing. As a result, defendants’ forecasted evidence—(1) that defendant Smith was induced to leave another sports agency to join plaintiff and (2) email communications noting Smith’s equity interest during the due diligence for a loan and outside investment in plaintiff—raises a genuine issue of material fact as to whether Smith holds an equity interest in plaintiff.

We reverse the trial court’s grant of summary judgment for plaintiff. Remanded.

Vanguard Sports Group, LLC v. Smith (Lawyers Weekly No. 012-081-22, 7 pp.) (John Tyson, J.) Appealed from Wake County Superior Court (Bryan Collins, J.) Rebecca Riley, Andrew Kim and Daniel Boyce for plaintiff; Anthony Young for defendants. 2022-NCCOA-118