Altior Law attorneys Matthew Smith and Kenneth Neuman recently secured an appellate win in the October 19, 2023 per curiam opinion of the Michigan Court of Appeals in the matter of Kris Krstovski v Daniel Kukes. The case arose from a dispute between co-managers of a Michigan limited liability company involved in a commercial property development. The plaintiff co-manager filed suit against the defendant co-manager alleging devaluing of the company’s property and profits, as well as the diminution of the membership interests of the company’s members. The plaintiff, however, was not individually a member of the company, nor did he have any direct interest in the company’s property or profits. In lieu of filing an answer, Altior Law moved for summary disposition of the plaintiff’s original and amended complaints, arguing that he lacked standing and was not the real party in interest to prosecute claims for the damages alleged. The trial court agreed and dismissed the co-manager plaintiff’s complaint.
On appeal the Michigan Court of Appeals affirmed. Relying on the Michigan Supreme Court’s opinion in Murphy v Inman, the Court reasoned that plaintiff’s claims to redress injury to the company’s property were at best derivative, rather than direct, claims. Plaintiff as a non-member, co-manager of the company lacked standing and was not the real party in interest to assert claims for injuries alleged to have been suffered by legal entities distinct from him.
Altior Law congratulates Matt and Ken on another appellate win on behalf of the firm’s clients.