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Dissolution or Oppression? Mapping the Minority Member’s Remedy Gap by State

By Jay R. McDaniel on May 13, 2026

Tile map of U.S. states comparing LLC minority oppression remedies by state: dissolution-only jurisdictions versus statutory oppression remedies


Key Takeaways:

  • Not every state gives an oppressed LLC member a statutory remedy. New York and Delaware confine judicial dissolution to the strict “not reasonably practicable” standard; New Jersey’s LLC statute expressly authorizes relief for oppression, and that power cannot be waived in the operating agreement.
  • In the gap states, freeze-out conduct alone rarely wins dissolution. The realistic paths are fiduciary duty claims — which produce damages, not exit — and, in New York, a court-fashioned buyout available only after a dissolution claim succeeds.
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  • Posted in:
    Corporate & Commercial
  • Blog:
    The Business Divorce Law Report
  • Organization:
    Jay R. McDaniel
  • Article: View Original Source

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