Danna Owen v. Timothy Scott Hutten

This case involves a man and a woman who formed a limited liability company under the Tennessee Revised Limited Liability Company Act, Tenn. Code Ann. §§ 48-249-101 et seq, with the ostensible purpose of investing in real estate. The only investment it made, however, was the purchase of a house for the man and his children to live in. The woman supplied all the money to buy the house, as well as all the capital that was invested in the company. After personal differences arose between the parties, the woman petitioned the court to dissolve the company and to distribute its assets. The man asked the court to divide the assets of the company equally between the parties in accordance with the provisions of Tenn. Code Ann. § 48-249-305(b). The woman asked the court to order that she be repaid her entire financial contribution to the company. The trial court dissolved the company. After hearing proof and argument, it ordered that the house be sold, with the net proceeds of the sale to be applied first to the return of the woman’s capital contributions, with any profits beyond those contributions to be divided equally between the parties. We affirm the trial court.