ELLIOTT GREENLEAF WINS SUPERIOR COURT APPEAL IN LLC DISPUTE

Elliott Greenleaf recently won a significant Pennsylvania Superior Court appeal concerning the requirements of asset transfers to a limited liability company (“LLC”) under Pennsylvania law.

Reversing the trial court, the Superior Court granted the Firm’s initial Motion to preserve the assets, and ordered an estate beneficiary who had wrongly taken $700,000 to repay the funds to the Estate.

EGS successfully argued that the Appellees Estate beneficiary could not receive funds from the deficient transfer of assets of the decedent’s sole proprietorship to a LLC, when the Appellees failed to follow multiple mandatory requirements for such a transfer, including implementing an operating agreement for the LLC and necessary gift tax returns. The Superior Court agreed that unfulfilled intent cannot effect legally enforceable transfers of assets to LLCs in Pennsylvania.

Senior shareholder Marvin L. Wilenzik, shareholder Kevin S. Anderson and associates Colin J. O’Boyle and Justin R. Miller represented the successful estate on appeal.