§ 7-16-58 — § 7-16-58. Expenses in derivative action.

Rhode Island § 7-16-58

• Jurisdiction: Rhode Island
• Title 7: Corporations, Associations and Partnerships
• Ch. 7-16: The Rhode Island Limited Liability Company Act

Text

§ 7-16-58. Expenses in derivative action.

(a) If a derivative action is successful, in whole or in part, or if anything is received by the plaintiff as a result of a judgment, compromise or settlement of an action or claim, the court may award the plaintiff reasonable expenses, including legal fees, and shall direct him or her to remit to the limited liability company the remainder of those proceeds received by him or her.

(b) In any action subsequently instituted on behalf of any limited liability company by a member or members of the company, the court having jurisdiction, upon final judgment and a finding that the action was brought without reasonable cause, may require the plaintiff or plaintiffs to pay to the parties named as defendants the reasonable expenses, including legal fees, incurred by them in the defense of the action.

Legislative History

P.L. 1992, ch. 280, § 1.