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Adam Gaslowitz et al.v.Stabilis Fund I, LP

CourtCourt of Appeals of Georgia
Docket No.A14A2029
DecidedMarch 12, 2015
Reporter331 Ga. App. 152; 770 S.E.2d 245
JudgesCourt of Appeals of Georgia, First Division; Chief Judge Phipps, Presiding Judge Ellington, and Judge McMillian; Presiding Judge Ellington authored the opinion
Tags
CivilBusiness LawContract LawCivil ProcedureSummary JudgmentStatutory InterpretationReversalRemand
Case Summary

After obtaining a $1.62 million judgment against Gaslowitz and two other debtors, Stabilis Fund sought a charging order against distributions due on his G&A, LLC interest and an accounting of company assets. The trial court granted partial summary judgment, then required Gaslowitz, G&A, LLC, and G&A, Inc. to post a supersedeas bond. In two consolidated appeals, the Court of Appeals of Georgia affirmed the charging order but reversed the accounting order and partly reversed the bond order. Under Georgia’s Limited Liability Company Act, a judgment creditor may charge a debtor-member’s distributional interest without proving the precise unsatisfied balance on the date of the order. That remedy does not reach specific company property, however, and the creditor receives only an assignee’s rights, which do not include an accounting of LLC assets. The court also held that a charging order concerns disposition of the debtor’s property and therefore may support a supersedeas bond as to the judgment debtor. But G&A, LLC was not itself a judgment debtor and the charging order did not dispose of its property; G&A, Inc. had no relief ordered against it. The bond was therefore affirmed as to Gaslowitz and reversed as to both entities.

Opinion

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Adam Gaslowitz et al. v. Stabilis Fund I, LP — The Atlanta Gleaner