WyomingCourts could order bad-faith LLC dissolution applicants to pay costs
For cases brought on or after July 1, 2026, a court could order damages and legal costs for a bad-faith request to dissolve an LLC.
What it does
If a court denies an LLC dissolution application and finds it was made in bad faith, it may order the applicant to pay damages, including reasonable legal fees and costs.
Argument forAn LLC or someone defending it could recover reasonable legal fees and costs when a court finds a denied dissolution application was made in bad faith.
Argument againstApplicants might avoid seeking court-ordered dissolution if they fear paying the LLC’s legal costs after a bad-faith finding.
More detail
A court may award damages, including reasonable attorneys’ fees and costs, to the LLC or a party who defended against the case. This applies to a case seeking dissolution under W.S. 17-29-701(a)(v). The court must deny the application and find that it was made in bad faith. Bad faith includes when the applicant caused or created the facts claimed as grounds for dissolution. Applies to covered cases brought on or after July 1, 2026; the act takes effect that day.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Feb 14H Did not Consider for IntroductionLatest
- Feb 11H Received for IntroductionMinor
- Feb 11Bill Number AssignedIntroduced
Civil Rights & Voting