JAMES MULLOY ET AL. v. EUGENE G. MULLOY, JR. ET AL. - Articles

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JAMES MULLOY ET AL. v. EUGENE G. MULLOY, JR. ET AL.

Posted by: Tanja Trezise on Oct 10, 2019

Court: TN Court of Appeals

Attorneys 1:

Samuel P. Funk and D. Gil Schuette, Nashville, Tennessee, for the appellants, James Mulloy and Chemical Properties, LLC.

Attorneys 2:

Garry K. Grooms, Nashville, Tennessee, for the appellees, Eugene Mulloy, Jr., and Cockrill Bend Properties, LLC.

Judge(s): MCBRAYER

Two brothers formed a limited liability company to own and lease a commercial property. When the tenant sought to expand, both brothers sought to find a suitable space for the tenant to lease. The younger of the two brothers found a property that would ideally suit the tenant’s needs, a fact that was communicated to his brother. The older brother purchased the property through a newly created limited liability company without his younger sibling’s involvement. The older brother’s new limited liability company then leased the new property to the tenant. The younger brother brought a derivative suit against his brother and the newly formed limited liability company, claiming usurpation of a corporate opportunity belonging to the limited liability company that the brothers had formed together and tortious interference with business relationships. The younger brother also claimed unjust enrichment. Following a trial, the chancery court found in favor of the older brother and his newly formed limited liability company and dismissed the complaint. After our review of the record, we affirm.

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