Patmon v. Hobbs’s Empirical Analysis

Citation profile

6 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 11 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “1. Except as otherwise provided in the operating agreement an authorized person 9 shall discharge his or her duty under sections 347.010 to 347.187 and the operating agreement in good faith, with the care a corporate officer of like position would exercise under similar circumstances, in the manner a reasonable person would believe to be in the best interest of the limited liability company, and shall not be liable for any such action so taken or any failure to take such action, if he or she performs such duties in compliance with this subsection. 2. To the extent that, at law or equity, a member or manager or other person has duties, including fiduciary duties, and liabilities relating to those duties to the limited liability company or to another member, manager, or other person that is party to or otherwise bound by an operating agreement: (1) Any such member, manager, or other person acting under the operating agreement shall not be liable to the limited liability company or to any such other member, manager, or other person for the member’s, manager’s, or other person’s good faith reliance on the provisions of the operating agreement; and (2) The member’s, manager’s or other person’s duties and liabilities may be expanded or restricted by provision in the operating agreement. 3. Except as otherwise provided in the operating agreement, every member or manager, if any, shall account to the limited liability company and hold as trustee for it any profit or benefit derived b”

   1 later decision quote this exact passage
   e.g. Steve Hibbs v. Brian Berger

2. “Unless otherwise provided in a written operating agreement: (1) With respect to any claim for breach of the duty of care, a member or manager shall not be hable, responsible, or accountable in damages or otherwise to the limited liability company or the members of the limited liability company for any action taken or1 failure to act on behalf of the limited liability company unless the act or omission constitutes wanton or reckless misconduct. (2) The duty of loyalty applicable to each member and manager shall be to account to the limited liability company and hold as trustee for it any profit or benefit‘derived by that person without the consent of more than one-half (½) by number of the disinterested managers, or a majority-in-interest of the members from:' (a) Any transaction connected with the conduct or winding up of the limited liability company; or ’ " (b) Any use by the member or manager of its property, including, but not limited to; confidential or proprietary information of the limited liability company or other matters entrusted to the person as a result of his or her status as manager or member;”

   1 later decision quote this exact passage
   e.g. Patmon v. Hobbs

3. “Patmon is entitled to damages for Hobbs’s common-law breach of fiduciary duty and failure to follow statutory guidelines of KRS § 275.170. Patmon submitted damages request based on the total contract price of the contracts at issue, but Patmon is only entitled to the percentage of profits she would have received if the contracts were executed by American Leasing instead of American Development. After the leases were complete, Hobbs sold his interest to a third party for $115,000 minus $25,000 for attorney fees. Hobbs made a total profit of $85,000 on the leases in question. Since Patmon owns 44% of American Leasing, the Court finds that her damages are 44% of $85,000, or $87,400, Accordingly, the Court sets Patmon’s damages for Hobbs’s common-law breach of fiduciary duty and failure to follow ■ statutory guidelines ' of KRS § 275.170 at $37,400.[ 3 ]”

   1 later decision quote this exact passage
   e.g. Patmon v. Hobbs