In the Aug. 31 case DFG Wine Co. LLC v. Eight Estates Wine Holdings LLC , the Delaware Court of Chancery considered the question of the right of a limited liability company member to inspect the books and records of the company’s subsidiary. In this post-trial letter opinion, the court granted an LLC member the right to inspect certain books and records of the company’s subsidiary even though neither the Delaware Limited Liability Company Act (LLC Act) nor the LLC agreement expressly give it that right.
DFG Wine Company LLC sought to inspect certain books and records of Eight Estates Wine Holdings LLC under both the right of access in the LLC Act, 6 Del. C. §18-305, and Eight Estates’ LLC agreement. Eight Estates’ primary asset was Ascentia Wine Estates LLC, a wholly owned subsidiary of Eight Estates and the sole operating entity. DFG served Eight Estates with a written demand for access to 16 categories of records of Eight Estates and Ascentia. DFG’s stated purposes for seeking the records were to (1) determine the value of its investment in Eight Estates, and (2) determine whether it should appoint a representative to sit on Eight Estates’ board of managers and whom. Eight Estates responded that it would provide the requested records held by it, but that DFG was not entitled to Ascentia’s records under the LLC Act or the LLC agreement.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
