In In re East End Development, LLC, 2013 WL 1820182 (Bankr. E.D.N.Y. Apr. 30, 2013), the managing member of the Debtor filed a bankruptcy petition on behalf of the Debtor and proposed a liquidation plan.  The managing member, an entity named MM SAG, owned fifty-percent of the Debtor; an entity named 21 West owned the other fifty-percent.  21 West moved to dismiss the case on the basis that the managing member lacked authority under the operating agreement to file a bankruptcy petition without 21 West’s consent.  The Bankruptcy Court disagreed, holding that the operating agreement granted the managing member broad powers to manage Debtor’s operations without the consent of 21 West.  These broad powers were limited by three express exceptions, and filing a bankruptcy petition was not one of them.  21 West also argued that the case should be dismissed as a bad faith filing because (1) the managing member failed to obtain 21 West’s consent to file the case and (2) the managing member stood to benefit from the filing by obtaining releases from certain personal guaranties.  But this argument was insufficient to show bad faith when the managing member had full authority to file the case, the Debtor was in financial distress, and the Debtor proposed a valid liquidation plan.  Accordingly, the Bankruptcy Court denied 21 West’s motion to dismiss the case.