Estate of Anna Mirowski, Deceased, Ginat W. Mirowski and Ariella Rosengard, Personal Representatives - Page 69




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          MFV is undertaken, section 4.2 of MFV’s operating agreement                 
          requires the allocation of profit or loss and the distribution              
          and the application of capital proceeds from that capital trans-            
          action as specified in that section.                                        
               On the record before us, we find that section 4.5.1 of MFV’s           
          operating agreement did not give Ms. Mirowski as the majority               
          percentage member of MFV (or as MFV’s general manager) the                  
          authority to determine the timing and the amount of distributions           
          of MFV’s cash flow and MFV’s capital proceeds.62  On that record,           

               62In so finding, we have considered respondent’s contention            
          that Ms. Mirowski had “by implication” the power to determine the           
          respective amounts of MFV’s cash flow and MFV’s capital proceeds            
          to be distributed.  According to respondent,                                
               [MFV’s operating agreement] Section 4.2.3, which states                
               that the amount of capital proceeds to be distributed                  
               is to be reduced by “any reserves which the General                    
               Manager deems necessary for liabilities or obligations                 
               of the Company . . . .”, gives decedent the power to                   
               determine the amount of such reserves, and by implica-                 
               tion, the amount of such distributions.  [MFV’s operat-                
               ing agreement] Section 1 [defines] “Cash Flow” [and]                   
               gives decedent a similar power “to pay or establish                    
               reasonable reserves for future expenses, debt payments,                
               capital improvements or replacements . . .” and thereby                
               the amount of distributable cash flow. * * *                           
               Ms. Mirowski’s authority as MFV’s general manager to estab-            
          lish reserves was limited to establishing reserves for MFV’s                
          liabilities and obligations and future expenses, debt payments,             
          capital improvements, and replacements.  Moreover, Ms. Mirowski’s           
          authority as MFV’s general manager to establish the types of                
          reserves in question was subject to the fiduciary duties imposed            
          on her by Maryland law.  See Robinson v. Geo Licensing Co.,                 
          L.L.C., 173 F. Supp. 2d 419, 427 (D. Md. 2001); Froelich v.                 
          Erikson, 96 F. Supp. 2d 507, 526 (D. Md. 2000), affd. per curiam            
          sub nom. Froelich v. Senior Campus Living, L.L.C., 5 Fed. Appx.             
                                                             (continued...)           





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