Also known as: remit · remittitur
Written by attorneys · grounded in primary & secondary sources — see below
A statutory obligation requiring the plaintiff in a successful derivative action to send any proceeds or benefits received immediately to the limited liability company or limited partnership on whose behalf the action was brought.
Select any source to read its text and confirm it supports the definition.
Riverside Healthcare, an LLC, sues a former manager for self-dealing and obtains a settlement. Plaintiff member Regina Robinson receives the settlement check. She must send the entire amount to Riverside Healthcare at once under the governing statute.
Reliance Insurance, a limited partnership, wins a derivative judgment against a general partner. Plaintiff limited partner Ronald Reed receives the judgment proceeds. He must forward them immediately to the partnership rather than retain any portion.
Horizon Ventures LLC brings a derivative suit through member Helen Hayes against a managing member for breach of duty and recovers damages. Helen receives the funds directly. She must immediately transfer the full amount to Horizon Ventures LLC under the statute.
Summit Partners LP succeeds in a derivative action via limited partner Samuel Soto against the general partner. Samuel obtains the judgment proceeds. He is required to remit them at once to Summit Partners LP and may not keep any share.
Pinnacle Holdings LLC wins a derivative settlement through plaintiff member Paula Price. Paula receives the settlement payment. She must send every dollar directly to Pinnacle Holdings LLC without delay per the uniform act.
Atlas LP recovers in a derivative suit brought by limited partner Andrew Ames. Andrew is paid the judgment amount. He must forward the proceeds immediately to Atlas LP under the applicable statute.
Any proceeds or benefits belong to the LLC, not the plaintiff. The plaintiff must send them to the company immediately upon receipt.
Supporting sources
Yes. The plaintiff must remit any proceeds immediately to the limited partnership rather than retain them personally.
Supporting sources
No. The statute requires immediate remittance upon receipt. No demand from the entity is necessary.
Supporting sources
…that "a constitutionally reasonable punitive damages award in this case is $2,000,000," id. , at 629, and therefore ordered a remittitur in that amount.[^maj-10] The court's discussion of the amount of its remitted award expressly disclaimed any reliance on "acts that occurred in other jurisdictions"; instead, the court…