Johnson Pope Bokor Ruppel & Burns, LLP is proud to announce that attorney Steve Pratico defeated a $5M derivative lawsuit by minority member in a landmark LLC dispute.

When a minority member of a commercial construction company filed a lawsuit seeking over $5 million in damages, our client turned to attorney Steve Pratico for representation. The case involved complex allegations of corporate mismanagement, missing assets, and breach of fiduciary duty, but through strategic litigation and a meticulous review of the facts, Steve delivered a decisive win.

Understanding the Dispute

The plaintiff, a minority member of an LLC, accused the managing members of violating the company’s operating agreement, violating numerous provisions of Chapter 605 of Florida Statutes, and misusing company funds. However, a thorough investigation revealed the underlying facts and circumstances of each transaction that was called into question as well as the role that the plaintiff played in corporate decision making. Ultimately, the Final Judgment showed that our clients were liable for only two transactions out of hundreds that were called into question, creating a liability of approximately $20,000; not the $5M+ sought at trial.

Building a Strong Defense

Steve led a comprehensive review of thousands of pages of financial records and internal documents. This analysis revealed a consistent pattern of business practices by the managing members, while also identifying questionable spending by the plaintiff. These findings were critical in demonstrating that the company’s leadership had acted in good faith and within the bounds of their authority.

Legal Strategy and Trial Execution

One pivotal element of the case was the plaintiff’s failure to prove the futility of a required pre-suit demand for all statutory claims, a legal step that must be taken when a derivative lawsuit is filed without such a demand. Steve filed a motion for directed verdict on this basis, arguing that the plaintiff had not met the legal standard to bypass this requirement. While the directed verdict was not granted, the argument formed the basis of a significant portion of the Final Judgment.

The case proceeded to a week-long bench trial in Lake County, Florida, with eight witnesses testifying. Despite the plaintiff rejecting a $300,000 settlement offer, the final judgment awarded was approximately $20,000, a fraction of the original claim.

The Outcome

• Claimed damages: $5 million+
• Settlement offer rejected by plaintiff: $300,000
• Final judgment: ~$20,000

This result not only protected our client from significant financial exposure but also reinforced the importance of sound legal strategy and thorough case preparation.

Why This Matters

This case highlights the value of working with a litigator who understands both the legal and operational complexities of closely held businesses. Steve Pratico’s ability to uncover key facts, challenge unsupported claims, and present a compelling case in court was instrumental in achieving this favorable outcome.

Work With a Proven Advocate

If your business is facing internal disputes or litigation, having the right legal counsel can make all the difference. Attorney Steve Pratico brings deep experience, strategic insight, and a track record of success to every case.