12.15.2009 In Olson v. Halvorsen, No. 338, 2009 (Del. Dec. 15, 2009), the Delaware Supreme Court affirmed that the statute of frauds prevents the former member of a limited liability company (LLC) from using oral agreements to increase the payout his former hedge fund partners allegedly owed him. The court held that because it could construe the statute of frauds and the Delaware LLC Act together and the General Assembly did not clearly intend the LLC Act to render the statute of frauds inapplicable. The court further held that the Delaware LLC Act does not explicitly remove LLC agreements from the application of the statute of frauds. Therefore, the statute of frauds applies to LLC agreements.
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