Legislative updates

Senate Bill 28, signed by the governor on March 27, 2019 and effective retroactively for a taxable year beginning on or after January 1, 2019 amends the corporation tax law regarding when a corporation is doing business in the state for corporate income tax purposes.
Senate Bill 39, effective May 8, 2018, changes the name of a certificate of good standing to a certificate of existence.

Case summaries

Authority to Retain Counsel
Sumsion v. Bay Harbor Farm, No. 20170066, decided 6/14/18. The Utah Court of Appeals ruled a member owning 45% of an LLC lacked authority to retain counsel for the LLC where the LLC statute required two-thirds consent for any action not in the ordinary course of business. Therefore, the LLC was not the attorney’s client and did not breach a contract by failing to pay him legal fees.
LLC in Bankruptcy
In re Community Translator Network, LLC, Case No. 2:17-cv-00736, decided 2/6/2018. The U.S District Court in Utah ruled that once a bankruptcy court appoints a trustee for a debtor LLC only that trustee can represent the LLC in litigation and the former manager had no authority to appeal on the LLC’s behalf.

Other notices

There are no new notices at this time.