After bench trial, court found that Defendant breached his fiduciary duty as a member of LLC by usurping business opportunities that should have first been offered to LLC, and entered judgment against him for $2.65 million. Court also found that LLC was required to compensate Defendant for the fair value of his membership interest upon his disassociation from LLC, and found that the fair value was $2.86 million; net judgment for Defendant for $210,995. No abuse of discretion in court finding that a partial forfeiture of the distributions Defendant had received was appropriate, and in styling award to include punitive damages of $651,104. No abuse of discretion in court's ruling that Plaintiffs were entitled to 5% prejudgment interest on their damages award. Defendant specifically raised sections 35-60 and 35-65 of the LLC Act in his counterclaim, and section 35-65 requires the award of prejudgment interest. Remanded for trial court to determine appropriate award of prejudgment interest to Defendant. (LAMPKIN and BURKE, concurring.)
Illinois Appellate Court
Civil Court
Interest