Burkle

SUMMARY

A daughter brought a lawsuit against her father, seeking declaratory relief and an accounting with respect to an investment the father made for the daughter without her knowledge. The daughter asserted the father improperly repaid himself, from her capital account in the limited liability company in which the funds were invested, for the funds he advanced. We hold that:

FACTUAL AND PROCEDURAL BACKGROUND

Carrie Burkle is Ronald Burkle’s adult daughter. In 1995, when Carrie was 19, her father formed Yucaipa Monterey, LLC, a Delaware limited liability company that was formed to purchase art and owns an unspecified number of paintings. Carrie has had a 1 percent interest in Yucaipa Monterey since its formation. Carrie’s father owns 99 percent of the company, and provided the funds for Carrie’s 1 percent interest.

In November 2003, several months after her mother, Janet Burkle, filed a petition for dissolution of her marriage to Carrie’s father, Carrie filed a lawsuit naming her father and her mother as defendants. Carrie’s mother is paying Carrie’s legal fees for the lawsuit. The lawsuit alleged that Carrie’s parents made various investments for her benefit,…