A Good Operating Agreement Can Avoid a Bad Lawsuit: Is Your Equestrian Business Ready for the Upcoming Winter Equestrian Season?
Andrew Boloy, Esq.
With the busiest part of the Wellington equestrian season approaching, it’s crucial to ensure your farm or business is fully protected. One key way to safeguard your interests is by having your Operating Agreements in place. These agreements are vital, as they outline each party’s roles, responsibilities, and expectations. They also provide a solid framework for decision-making, profit distribution, and resolving disputes.
A recent case involving NPF Racing Stables, LLC, demonstrates the importance of having well-drafted Operating Agreements. The lawsuit, filed against Yesenia Aguirre and several other defendants, alleged that Aguirre committed fraud and breached her fiduciary duties while serving as CEO. After her termination and buyout from the LLC, the defendants were accused of taking and profiting from NPF’s horses and equipment. The court partially granted NPF’s motion for a preliminary injunction, prohibiting the defendants from selling, racing, or moving certain horses and equipment, while requiring NPF to post a $10,000 bond.
This case underscores the critical role that Operating Agreements play in preventing disputes over asset ownership and operational control. It’s imperative to ensure these agreements are accessible to everyone involved, including those who may not speak English as their first language. At Pike and Lustig, we can provide your Operating Agreements in English, Spanish, or other languages to ensure all parties fully understand their roles and responsibilities.
If you need assistance drafting or reviewing your Operating Agreements, contact our experienced attorneys today. We are here to help ensure your business runs smoothly and efficiently throughout the season.
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Why You Should Get Your Operating Agreements in Order Now:
- Clarify Roles and Responsibilities: Clearly defined roles help prevent misunderstandings and conflicts, allowing your team to operate smoothly and efficiently.
- Protect Your Business Interests: A well-drafted agreement protects your interests and those of your partners, ensuring everyone is on the same page.
- Facilitate Smooth Operations: With everything outlined in advance, you can focus on your business and horses rather than dealing with administrative hassles.
Case: https://casetext.com/case/npf-racing-stables-llc-v-aguirre
NPF RACING STABLES, LLC, Plaintiff, v. YESENIA G. AGUIRRE, individually and d/b/a Cuadra El Fenix, EL FENIX INC., RANCHO EL FENIX INC., CARLA LLERENAS, BENJAMIN HERNANDEZ, and HECTOR RODRIGUEZ, individually and d/b/a Cuadra La Arana, Defendants.
