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In our experience real estate disputes arise between partners in a real estate investment. Typically taking the form of a limited liability company. When people form a partnership or limited liability company for the purposes of developing real estate they take on certain responsibilities. Such as, how much capital they’re going to contribute, how much capital they’re going to receive, profit sharing structures, additional capital calls, management of the LLC. All of those issues, unfortunately from time to time, result in litigation because parties have not properly documented the terms of their arrangement in their agreement.
That can go to the extent of their ownership interests. We’ve had cases where parties have disparate views of what ownership interests they have in these LLCs, which in turn means what interest they have in the property. All of those issues result in some fairly substantial litigation.
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Los Angeles, CA commercial litigation attorney Brian M. Grossman talks about the types of issues that give rise to real estate litigation.