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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal>Rob,<o:p></o:p></p><p class=MsoNormal>Under RCW <span lang=EN>25.15.018(3)(k) [covering certain non-waivable provisions of the operating agreement], t</span>he operating agreement may not “[v]ary the power of a court to decree dissolution in the circumstances specified in RCW 25.15.274<span lang=EN>. It also may not “[v]</span>ary the requirement to wind up the limited liability company's business as specified in RCW 25.15.297 … and <span style='background:yellow;mso-highlight:yellow'>(5)</span>,” which appears to cover the second clause of the provision you cited.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Regarding the older case you mentioned, if the court relied on the second clause of 25.15.274 (given no deadlock) to permit dissolution only to let the other two members “retire,” I think that is questionable. Of course, that is the reason for including a buy-sell type of provision in a multi-member operating agreement.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Bob Pampell<o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>Robert Pampell, Attorney<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>21st Century Law Office (r)<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#365F91'>19125 Northcreek Parkway, Suite 120<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#365F91'>Bothell, WA 98011<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'>voice: 425-329-2629<br>fax: 877-640-6403<br>cell: 425-501-4784<br>email: </span><span style='color:#1F497D'><a href="mailto:rpampell@swcp.com" title="mailto:rpampell@swcp.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>rpampell@swcp.com</span></a></span><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><a href="http://www.linkedin.com/in/robertpampell"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>http://www.linkedin.com/in/robertpampell</span></a></span><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><a href="http://www.21stlawoffice.com/"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>www.21stLawOffice.com</span></a></span><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Rob Rowley<br><b>Sent:</b> Friday, January 19, 2018 9:12 AM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Judicial Dissolution of LLC (RCW 25.15.274) vs LLC provision prohibiting dissolution?<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'>Assume Washington LLC with real estate. LLC operating agreement contains provision expressly waving right to court decree of dissolution. “Each party hereby waives and renounces its right to seek a court order or dissolution or to seek the appointment by the court of a liquidator for the company.”</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'>However, RCW 25.15.274 provides that a manager or member can seek judicial dissolution under certain facts.</span><o:p></o:p></p><p class=MsoNormal style='margin-bottom:3.75pt;background:white'><b><span style='font-size:12.0pt;font-family:"Open Sans";color:black'>RCW 25.15.274</span></b><o:p></o:p></p><p class=MsoNormal style='margin-bottom:3.75pt;background:white'><b><span style='font-size:12.0pt;font-family:"Open Sans";color:black'>Judicial dissolution.</span></b><o:p></o:p></p><p class=MsoNormal style='text-indent:.25in;background:white'><span style='font-size:12.0pt;font-family:"Open Sans";color:black'>On application by a member or manager the superior courts may order dissolution of a limited liability company whenever: (1) It is not reasonably practicable to carry on the limited liability company's activities in conformity with the certificate of formation and the limited liability company agreement; or (2) other circumstances render dissolution equitable.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'>About 10 years ago I defended an LLC member who had a 50% interest in a very successful commercial building against two members who wanted to retire and have the other 50%. LLC operating agreement did not contain a provision that expressly waived the right to seek a judicial dissolution, but it had something similar. The Superior Court judge ruled against my client and granted dissolution even though the company was quite profitable and not really deadlocked. A couple of the members wanting to retire was sufficient ground to allow dissolution. That litigation was under the older status RCW 25.15.270.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'>Your thoughts?</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman",serif'> </span><o:p></o:p></p><p class=MsoNormal style='line-height:12.0pt'><b><span style='font-size:10.0pt;font-family:"Times New Roman",serif'> </span></b><o:p></o:p></p><p class=MsoNormal style='line-height:12.0pt'><!--[if gte vml 1]><v:shapetype id="_x0000_t75" coordsize="21600,21600" o:spt="75" o:preferrelative="t" path="m@4@5l@4@11@9@11@9@5xe" filled="f" stroked="f">
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