Opinion ID: 1103461
Heading Depth: 3
Heading Rank: 2

Heading: Was Lane's buy-sell offer to Bellin valid?

Text: ¶ 20. Lane's buy-sell offer to Bellin was proper and valid. As we will explain, Lane complied with the requirements of the operating agreement provision which governs buy-sell offers, [14] and therefore summary judgment was improperly granted on this issue. ¶ 21. Bellin argues that Lane had no right to make the buy-sell offer to Bellin under the operating agreement, but this is incorrect. Bellin correctly points out that under Section 10.3, an offer to buy the interest of another member must be given together with an offer to sell one's own interest. However, Bellin goes on to argue that Lane's buy-sell offer is void because under section 10.6 of the operating agreement, Lane was prohibited from selling his own interest without written consent of all members. Because he never consented to the sale and/or transfer of Lane's interest, Bellin argues, Lane could not make a valid buy-sell offer. ¶ 22. While Bellin's reasoning is creative, we are unpersuaded. Section 10.6 of the operating agreement prohibits Lane from conveying any interest in the LLC. Section 10.3 by definition governs only offers to buy/sell. KBL and Kalian correctly point out that Lane made an offer to sell, but did not make a conveyance. Under the language of the operating agreement, only a conveyance by Lane required the consent of the other members, and no conveyance occurred here. Furthermore, if Bellin had accepted Lane's offer to sell, Bellin's acceptance would have satisfied the consent of other members requirement under 10.3. Lane's buy-sell offer met the requirements of the LLC's operating agreement, and we therefore hold that summary judgment was improperly granted on this issue.