Law v. Zemp

The charging order at issue here was issued over limited partnerships’ and limited liability company’s objections that ancillary provisions included in the charging order, which required them to refrain from certain kinds of transactions and provide extensive financial information to the judgment creditor, were not authorized under the controlling statutes. On appeal, the Court of Appeals held that some, but not all, of the ancillary provisions were authorized. The Oregon Supreme Court held a trial court has either general or specific statutory authority to include, in a charging order, ancillary provisions that it finds necessary to allow a judgment creditor access to a debtor-partner’s distributional interest in a company, as long as those provisions do not unduly interfere with the company’s management. Furthermore, the Court held that in this case, the record did not establish that that standard was met and, therefore, that the trial court erred in imposing the challenged ancillary provisions. The Court reversed the Court of Appeals and vacated the circuit court order, and remanded to the circuit court for further proceedings. View "Law v. Zemp" on Justia Law