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Read. Follow. Verify.Wyoming Bill Authorizes Legal Fees and Costs for Bad Faith LLC Dissolution Applications
Last action · February 13, 2026: H Did not Consider for IntroductionSponsors: Tomi Strock and 2 others
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What This Bill Proposed
Wyoming courts are authorized to award damages, including reasonable attorneys' fees and costs, to limited liability companies or defending parties when a application is denied and found to be made in . The provisions apply to proceedings brought on or after July 1, 2026.
Establishes a financial penalty for individuals or entities filing unjustified requests to dissolve a limited liability company, shifting legal costs to the applicant in cases.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
limited liability companies
Limited liability companies gain the ability to seek attorneys' fees and costs when defending against bad faith dissolution proceedings.
parties defending against dissolution proceedings
Defending parties may be awarded damages, including reasonable attorneys' fees and costs, if a court finds a dissolution application was made in bad faith.
Key Facts
- Courts may award damages, including reasonable attorneys' fees and costs, to an LLC or defending party if a dissolution application is denied and determined to be made in bad faith.
- Bad faith includes instances where the applicant caused or created the facts and circumstances alleged as grounds for dissolution.
- The act applies to dissolution proceedings brought on or after July 1, 2026.
Frequently Asked Questions
What happens if a request to dissolve an LLC is denied and found to be in bad faith?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · introduced in the House.
Procedural history
3 actions- Feb 13, 2026HouseH Did not Consider for Introduction
- Feb 11, 2026HouseH Received for Introduction
- Feb 10, 2026Bill Number Assigned
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
www.wyoleg.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 40)
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz10Current news / social attention level
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