Ehrman

FACTS AND PROCEDURAL HISTORY

Allegations in Ehrman’s Complaint Ehrman and Post began working together in 2007, purchasing, managing, and selling property. Under the terms of an alleged oral partnership, they secured capital for investment and shared profits, losses, and liabilities, forming dozens of limited liability companies (LLCs) and limited partnerships to

1 Undesignated statutory references are to the Code of Civil Procedure.

2 hold properties they acquired. Ehrman was a member, manager, or managing member of many of the LLCs. His position is memorialized in operating agreements and other documents. Ehrman alleges that Post engaged in misconduct, including misappropriation of investor funds and defrauding investors by billing for construction work that was never performed. Ehrman admonished Post to stop his wrongful behavior. Instead, Post pushed Ehrman out of their business, excluded him from participation in management, sold assets without Ehrman’s knowledge or approval, refused to provide Ehrman with business records, and failed to pay distributions. Ehrman filed suit against Post, individually and as trustee of the Posovsky/Rakow Living Trust (Trust); Post Investment…