IN RE: NATIONAL AUDITING SERVICES & CONSULTING (2024)

Supreme Court, Appellate Division, First Department, New York.

IN RE: NATIONAL AUDITING SERVICES & CONSULTING, LLC, Petitioner–Respondent, v. 511 PROPERTY, LLC, et al., Respondents–Appellants.

2069

Decided: April 16, 2024

Kern, J.P., Singh, Scarpulla, Mendez, Higgitt, JJ.

Law Office of Robert M. Kaplan, White Plains (Robert M. Kaplan of counsel), for appellants. Westerman Ball Ederer Miller Zucker & Sharfstein, LLP, Uniondale (Andrew S. Lewner of counsel), for respondent.

Order, Supreme Court, New York County (Lyle E. Frank, J.), entered January 5, 2023, which granted the petition for a turnover order requiring respondents to turn over to petitioner 511 Property, LLC's membership interest in respondent 511 Property II LLC, in partial satisfaction of petitioner's judgment against 511 Property LLC, unanimously affirmed, without costs.

Contrary to respondents’ contention, the internal affairs doctrine, Limited Liability Company Law § 801, does not apply to a proceeding to turnover a membership interest in a foreign limited liability company, where that interest is owned by the judgment debtor. In such a proceeding, New York law applies (see 79 Madison LLC v. Ebrahimzadeh, 203 AD3d 589, 590 [1st Dept 2022]).

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