Smart Tech Development v. Pink Water
Smart Tech Development v. Pink Water, 2025 UT App 18 (Mortensen, J.)
Civil
The Utah Court of Appeals held:
- Both Utah and Wyoming law grant LLCs the right to bring claims enforcing their operating agreements, so Smart Tech had standing to bring its case.
- The district court abused its discretion in denying Smart Tech’s motion under rules 59(e) and 60(b) of the Utah Rules of Civil Procedure to alter, amend, or vacate the judgement.
- Practice tip: When an LLC is enforcing the terms of its operating agreement against a member, the claim is between the LLC and the member, not a third party involved in a sale with the member.