Streck, Inc. v. Ryan Family , 901 N.W.2d 284 ( 2017 )


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  • Nebraska Supreme Court Online Library
    www.nebraska.gov/apps-courts-epub/
    09/15/2017 09:10 AM CDT
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    Nebraska Supreme Court A dvance Sheets
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    STRECK, INC. v. RYAN FAMILY
    Cite as 
    297 Neb. 773
    Streck, Inc., a Nebraska corporation, appellee, v.
    Ryan Family, L.L.C., appellee, and Stacy Ryan,
    individually and derivatively on behalf of
    Ryan Family, L.L.C.,      appellant.
    ___ N.W.2d ___
    Filed September 15, 2017.   No. S-16-664.
    1.	 Interventions: Appeal and Error. Whether a party has the right to
    intervene in a proceeding is a question of law. On a question of law,
    an appellate court is obligated to reach a conclusion independent of the
    determination reached by the court below.
    2.	 Jurisdiction: Appeal and Error. Before reaching the legal issues
    presented for review, it is the duty of an appellate court to determine
    whether it has jurisdiction over the matter before it.
    3.	 Interventions: Final Orders: Appeal and Error. An order denying
    intervention is a final order for purposes of appeal.
    4.	 Interventions: Final Orders. 
    Neb. Rev. Stat. § 25-1315
     (Reissue 2016)
    does not modify Nebraska’s final order jurisprudence as it regards orders
    denying intervention.
    5.	 Interventions. As a prerequisite to intervention under 
    Neb. Rev. Stat. § 25-328
     (Reissue 2016), the intervenor must have a direct and legal
    interest of such character that the intervenor will lose or gain by the
    direct operation and legal effect of the judgment which may be rendered
    in the action.
    6.	 ____. An indirect, remote, or conjectural interest in the result of a suit
    is not enough to establish intervention as a matter of right. Simply hav-
    ing a claim that arises out of the same facts as the claims at issue in
    the litigation does not constitute having a sufficient interest to support
    intervention.
    7.	 Interventions: Pleadings. A person seeking to intervene must allege
    facts showing that he or she possesses the requisite legal interest in the
    subject matter of the action.
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    STRECK, INC. v. RYAN FAMILY
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    297 Neb. 773
    8.	 ____: ____. For purposes of ruling on a motion for leave to intervene,
    a court must assume that the intervenor’s factual allegations set forth in
    the complaint are true.
    9.	 ____: ____. A prospective intervenor can raise his or her claims or
    defenses, but those claims or defenses must involve the same core issue
    as the claims between the existing parties. Intervenors can raise only
    issues that sustain or oppose the respective contentions of the origi-
    nal parties.
    10.	 Interventions. An intervenor is bound by any determinations that were
    made before he or she intervened in the action. In other words, an inter-
    venor must take the suit as he or she finds it.
    11.	 Corporations: Contracts. The Nebraska Uniform Limited Liability
    Company Act is a default statute; subject to certain enumerated excep-
    tions, the act governs only when the operating agreement is silent.
    12.	 ____: ____. Under the Nebraska Uniform Limited Liability Company
    Act, a member of a limited liability company is deemed to assent to the
    operating agreement.
    13.	 Corporations. Under the Nebraska Uniform Limited Liability Company
    Act, in a manager-managed limited liability company, matters relating
    to the activities of the company are decided exclusively by the managers
    unless otherwise expressly provided in the act.
    14.	 Corporations: Actions: Interventions. The fact that a member of
    a limited liability company might experience reduced distributions,
    depending on the outcome of a lawsuit against the company, does not
    give the member a direct and legal interest in the lawsuit sufficient to
    support intervention.
    15.	 ____: ____: ____. For purposes of determining the right to intervene, a
    court generally treats actions by a member of a limited liability company
    in the same manner as actions by a shareholder of a corporation.
    16.	 Corporations: Actions: Parties. As a general rule, a shareholder may
    not bring an action in his or her own name to recover for wrongs done
    to the corporation or its property. Such a cause of action is in the cor-
    poration and not the shareholders. The right of a shareholder to sue is
    derivative in nature and normally can be brought only in a representative
    capacity for the corporation.
    17.	 Corporations: Actions: Parties: Interventions. When a corporation
    cannot or will not protect the interests of the stockholders, a stock-
    holder may intervene in an action on behalf of the corporation for the
    shareholder’s own protection. However, this is a very limited excep-
    tion to the general rule that a shareholder may not bring an action in
    his or her own name to recover for wrongs done to the corporation or
    its property.
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    STRECK, INC. v. RYAN FAMILY
    Cite as 
    297 Neb. 773
    18.	 Appeal and Error. An appellate court is not obligated to engage in an
    analysis that is not necessary to adjudicate the case and controversy
    before it.
    Appeal from the District Court for Sarpy County: William
    B. Zastera, Judge. Affirmed.
    Paul Heimann, Bonnie M. Boryca, and Karen M. Keeler, of
    Erickson & Sederstrom, P.C., for appellant.
    John D. Stalnaker and Aimee K. Cizek, of Stalnaker, Becker
    & Buresh, P.C., for appellee Ryan Family, L.L.C.
    Thomas H. Dahlk and Victoria H. Buter, of Kutak Rock,
    L.L.P., and Ronald E. Reagan, of Reagan, Melton & Delaney,
    L.L.P., for appellee Streck, Inc.
    Heavican, C.J., Wright, Cassel, Stacy, and Funke, JJ.
    Per Curiam.
    In January 2016, Streck, Inc., filed a complaint against
    the Ryan Family, L.L.C. (L.L.C.), in the district court for
    Sarpy County. Streck’s complaint alleged the L.L.C. breached a
    lease agreement containing an option to purchase real property
    and sought specific performance. The L.L.C. responded and
    defended the action. In June, a member of the L.L.C. moved
    to intervene in her own behalf and on behalf of the L.L.C.
    She appeals from the district court’s order denying her motion.
    We affirm.
    I. FACTS
    1. Parties
    Streck is a Nebraska corporation with its principal place of
    business in La Vista, Sarpy County, Nebraska. The L.L.C. is
    a Nebraska limited liability company composed of six mem-
    bers of the Ryan family, including Stacy Ryan (Ryan). The
    L.L.C.’s only asset is real property located in La Vista, which
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    STRECK, INC. v. RYAN FAMILY
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    it leases to Streck, and the cash generated from the rental of
    that property.
    2. Lease Agreement
    The L.L.C. leased the property to Streck pursuant to an
    agreement dated December 1999 and subsequently amended.
    The lease gave Streck an option to purchase the property from
    the L.L.C. based on certain conditions. Streck claims it met
    the conditions and properly exercised the option. Based on the
    date Streck exercised the option, closing should have occurred
    no later than January 3, 2016. When no closing occurred,
    Streck filed suit against the L.L.C.
    3. Lawsuit Between Streck
    and L.L.C.
    Streck filed its complaint January 13, 2016, in the district
    court. It sought an order declaring the L.L.C. in breach of
    the lease and ordering specific performance of the option to
    purchase.
    The L.L.C. operating agreement vests all management duties
    in a management board consisting of comanagers Wayne Ryan
    and Connie Ryan. After being served with the complaint, the
    comanagers of the L.L.C. filed an application for appointment
    of a receiver to represent the L.L.C., citing a conflict which
    they described as follows:
    Co-Manager Dr. Wayne Ryan believes the [L.L.C.] must
    oppose Streck’s Complaint as he believes Streck does not
    hold a valid Option to Purchase the Property due in part
    to an Event of Default pursuant to the Lease Agreement.
    Co-Manager Connie Ryan disagrees with Dr. Ryan, and
    the Co-Managers have been unable to agree on the man-
    agement of the [L.L.C.]
    . . . Co-Manager Connie Ryan has declined Dr. Ryan’s
    request to recuse herself from the management of the
    [L.L.C.], and Dr. Ryan has similarly declined to allow
    Connie Ryan to serve as sole Manager of the [L.L.C.] As
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    STRECK, INC. v. RYAN FAMILY
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    297 Neb. 773
    a result of the Co-Managers’ disagreements, the [L.L.C.]
    is unable to retain legal counsel to respond to Streck’s
    Complaint in the above-captioned case.
    . . . In light of their disagreement, the Co-Managers
    believe that appointment of [a] Receiver for the [L.L.C.]
    is necessary and appropriate to respond to Streck’s
    Complaint and avoid default for failure to Answer.
    No party opposed the comanagers’ request, and the court
    appointed a receiver to represent the L.L.C.’s interest in the
    lawsuit.
    On March 3, 2016, the receiver, on behalf of the L.L.C.,
    filed an answer and counterclaim. The counterclaim alleged
    that Streck was in default of the lease agreement when it
    attempted to exercise the option and that the default voided
    Streck’s right to exercise the option.
    On June 15, 2016, Streck moved for partial summary judg-
    ment, asking the court to find as a matter of law that it was
    not in default at the time it exercised the option to purchase.
    At the hearing on the partial summary judgment motion, the
    parties offered a joint stipulation, which the court received.
    Posthearing briefing was permitted, and the matter was set for
    further proceedings on July 5.
    4. Complaint in Intervention
    On June 22, 2016, Ryan filed a “Complaint in Intervention”
    seeking to intervene “on her own behalf and derivatively on
    behalf of the [L.L.C.]” On June 27, she moved to continue
    the summary judgment hearing scheduled for July 5. On June
    29, Ryan filed a “Motion for Order Permitting Complaint in
    Intervention” asking for “an order permitting her to intervene
    [and] allowing her Complaint in Intervention, filed and served
    on June 22, 2016.”
    All of Ryan’s motions were taken up at a hearing on July
    1, 2016. On July 5, the court entered two orders. One order
    overruled Ryan’s motion to intervene, and the other over-
    ruled her motion to continue the summary judgment hearing.
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    Neither order set forth the court’s reasoning. Ryan appeals
    from both orders. We moved the appeal to our docket on our
    own motion.1
    II. ASSIGNMENTS OF ERROR
    Ryan assigns, restated, that the district court erred in (1)
    disallowing her complaint in intervention; (2) denying her
    motion to intervene, including her request for access to the
    parties’ prior discovery and her request to conduct additional
    discovery; and (3) failing to continue the hearing on Streck’s
    motion for summary judgment or to reopen the summary
    judgment record to allow her an opportunity to conduct nec-
    essary discovery and to participate in the summary judgment
    proceedings.
    III. STANDARD OF REVIEW
    [1] Whether a party has the right to intervene in a proceed-
    ing is a question of law.2 On a question of law, an appellate
    court is obligated to reach a conclusion independent of the
    determination reached by the court below.3
    IV. ANALYSIS
    1. Jurisdiction
    [2,3] Before reaching the legal issues presented for review,
    it is the duty of an appellate court to determine whether it has
    jurisdiction over the matter before it.4 Since at least 1985, we
    have held that an order denying intervention is a final order for
    purposes of appeal.5 Streck acknowledges this, but contends
    that our final order jurisprudence has failed to consider the
    1
    
    Neb. Rev. Stat. § 24-1106
    (3) (Reissue 2016).
    2
    Ruzicka v. Ruzicka, 
    262 Neb. 824
    , 
    635 N.W.2d 528
     (2001).
    3
    
    Id.
    4
    Trainum v. Sutherland Assocs., 
    263 Neb. 778
    , 
    642 N.W.2d 816
     (2002).
    5
    Basin Elec. Power Co-op v. Little Blue N.R.D., 
    219 Neb. 372
    , 
    363 N.W.2d 500
     (1985).
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    STRECK, INC. v. RYAN FAMILY
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    297 Neb. 773
    effect of the Legislature’s adoption in 2000 of 
    Neb. Rev. Stat. § 25-1315
     (Reissue 2016). Section 25-1315(1) provides:
    When more than one claim for relief is presented in an
    action, whether as a claim, counterclaim, cross-claim, or
    third-party claim, or when multiple parties are involved,
    the court may direct the entry of a final judgment as to
    one or more but fewer than all of the claims or parties
    only upon an express determination that there is no just
    reason for delay and upon an express direction for the
    entry of judgment. In the absence of such determina-
    tion and direction, any order or other form of decision,
    however designated, which adjudicates fewer than all
    the claims or the rights and liabilities of fewer than all
    the parties shall not terminate the action as to any of the
    claims or parties, and the order or other form of deci-
    sion is subject to revision at any time before the entry of
    judgment adjudicating all the claims and the rights and
    liabilities of all the parties.
    Streck argues that the order denying Ryan’s motion to intervene
    did not meet the requirements of § 25-1315, because it did not
    contain an express determination that there was no just reason
    for delay and it did not expressly direct entry of judgment.
    [4] We conclude § 25-1315 does not modify our final order
    jurisprudence as it regards orders denying intervention. The
    plain language of the statute references claims, counterclaims,
    cross-claims, and third-party claims, but does not mention
    complaints in intervention. Moreover, even after § 25-1315
    was enacted, we continued to apply our existing final order
    jurisprudence to orders denying intervention,6 and we see no
    principled basis to depart from that precedent. For these rea-
    sons, we conclude that our final order jurisprudence regarding
    orders denying intervention was not superseded by § 25-1315
    6
    See, Spear T Ranch v. Knaub, 
    271 Neb. 578
    , 
    713 N.W.2d 489
     (2006);
    Douglas Cty. Sch. Dist. 0001 v. Johanns, 
    269 Neb. 664
    , 
    694 N.W.2d 668
    (2005).
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    and that the order denying Ryan’s motion to intervene is a
    final, appealable order. We have jurisdiction over this appeal,
    and Streck’s arguments to the contrary are without merit.
    2. Intervention
    (a) Legal Framework
    The right to intervene is granted by statute in Nebraska.
    
    Neb. Rev. Stat. § 25-328
     (Reissue 2016) provides:
    Any person who has or claims an interest in the mat-
    ter in litigation, in the success of either of the parties to
    an action, or against both, in any action pending or to be
    brought in any of the courts of the State of Nebraska, may
    become a party to an action between any other persons
    or corporations, either by joining the plaintiff in claiming
    what is sought by the complaint, or by uniting with the
    defendants in resisting the claim of the plaintiff, or by
    demanding anything adversely to both the plaintiff and
    defendant, either before or after issue has been joined in
    the action, and before the trial commences.
    Ryan bases her intervention rights solely on § 25-328, so we
    begin by reviewing the legal propositions governing such
    intervention.
    [5-8] As a prerequisite to intervention under § 25-328, the
    intervenor must have a direct and legal interest of such charac-
    ter that the intervenor will lose or gain by the direct operation
    and legal effect of the judgment which may be rendered in
    the action.7 An indirect, remote, or conjectural interest in the
    result of a suit is not enough to establish intervention as a mat-
    ter of right.8 Simply having a claim that arises out of the same
    facts as the claims at issue in the litigation does not constitute
    having a sufficient interest to support intervention.9 Therefore,
    a person seeking to intervene must allege facts showing that
    7
    Spear T Ranch v. Knaub, 
    supra note 6
    .
    8
    
    Id.
    9
    See Kirchner v. Gast, 
    169 Neb. 404
    , 
    100 N.W.2d 65
     (1959).
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    he or she possesses the requisite legal interest in the subject
    matter of the action.10 For purposes of ruling on a motion for
    leave to intervene, a court must assume that the intervenor’s
    factual allegations set forth in the complaint are true.11
    [9,10] Our jurisprudence also recognizes some practical
    limitations on the right to intervene. A prospective interve-
    nor can raise his or her claims or defenses, but those claims
    or defenses must involve the same core issue as the claims
    between the existing parties.12 Intervenors can raise only issues
    that “sustain or oppose the respective contentions of the [origi-
    nal parties].”13 The intervenor is bound by any determinations
    that were made before he or she intervened in the action.14 In
    other words, “‘[a]n interven[o]r must take the suit as he finds
    it . . . .’”15
    With these principles in mind, we review Ryan’s complaint
    in intervention to determine whether she has alleged a direct
    and legal interest sufficient to support intervention.
    (b) Ryan’s Complaint to Intervene
    Ryan alleges she has a nearly 20-percent interest in the
    L.L.C. as a member thereof. She further alleges the interests
    of the L.L.C. are not being “fully protected” by the receiver,
    and she alleges the receiver should have asserted additional
    claims and defenses on behalf of the L.L.C. She also seeks by
    intervention to challenge the appointment of the receiver and to
    present a claim that the comanagers of the L.L.C. breached the
    operating agreement by requesting appointment of a receiver.
    10
    Spear T Ranch v. Knaub, 
    supra note 6
    .
    11
    
    Id.
    12
    See Ruzicka v. Ruzicka, 
    supra note 2
    .
    13
    State ex rel. Nelson v. Butler, 
    145 Neb. 638
    , 650, 
    17 N.W.2d 683
    , 691
    (1945).
    14
    See School Dist. of Gering v. Stannard, 
    196 Neb. 367
    , 
    242 N.W.2d 889
    (1976).
    15
    Drainage District v. Kirkpatrick-Pettis Co., 
    140 Neb. 530
    , 538, 
    300 N.W. 582
    , 587 (1941).
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    Before we address whether Ryan has shown a direct and
    legal interest sufficient to allow her to intervene, we note
    that to the extent Ryan seeks by intervention to challenge the
    appointment of the receiver or allege the L.L.C. managers have
    breached the operating agreement, she is attempting improp-
    erly to expand the scope of the litigation. As stated earlier,
    the claims or defenses of an intervenor must involve the same
    core issues as the claims between the existing parties,16 and
    intervenors can raise only issues that “sustain or oppose the
    respective contentions of the [original parties].”17 Here, the
    dispute between the original parties is over whether there was a
    breach of the lease agreement. The suit does not involve either
    the validity of the appointment of the receiver or any potential
    breach of the operating agreement. Thus, Ryan’s claims chal-
    lenging the appointment of the receiver or the comanagers’
    breach of the operating agreement cannot provide a basis for
    her right to intervene in this action, and we will not address
    those claims further.
    (i) No Right to Intervene
    in Ryan’s Own Behalf
    To support her claim of a direct and legal interest sufficient
    to support the right to intervene in her own behalf, Ryan argues
    she is a 20-percent member of the L.L.C. and stands to lose
    or gain financially depending on how the court resolves the
    dispute between the L.L.C. and Streck. Before addressing this
    argument, we clarify the nature of Ryan’s rights as a member
    of the L.L.C.
    [11] Ryan’s rights in that regard are governed by the
    Nebraska Uniform Limited Liability Company Act (LLC Act)18
    and the terms of the L.L.C.’s operating agreement. Subject to
    certain enumerated exceptions not relevant here, most matters
    16
    See Ruzicka v. Ruzicka, 
    supra note 2
    .
    17
    State ex rel. Nelson v. Butler, supra note 13, 145 Neb. at 650, 17 N.W.2d
    at 691.
    18
    
    Neb. Rev. Stat. § 21-101
     et seq. (Reissue 2012 & Cum. Supp. 2016).
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    are governed by the operating agreement entered into by the
    members of the L.L.C., and the LLC Act governs only when
    the operating agreement is silent.19
    [12,13] As pertinent here, the LLC Act provides that a
    member of a limited liability company is deemed to assent to
    the operating agreement.20 And, specifically, “[i]n a manager-
    managed limited liability company, . . . [e]xcept as otherwise
    expressly provided in the [LLC Act], any matter relating to
    the activities of the company is decided exclusively by the
    managers.”21
    The L.L.C. operating agreement, a copy of which was
    attached to Ryan’s complaint in intervention, provides:
    “The Members of the Company vest the management of the
    Company in a Management Board, which shall have sole
    power and authority to conduct the affairs of the Company . .
    . .” The operating agreement also gives the managers the right
    “[t]o employ . . . managing agents or other experts to perform
    services for the Company and . . . [t]o enter into any and all
    other agreements on behalf of the Company, with any other
    Person for any purpose, in such forms as the Managers may
    approve.” Based on the provisions of the LLC Act and the
    operating agreement, Ryan has no legal authority to conduct
    the affairs of the L.L.C.
    Ryan contends that despite being a nonmanaging member
    of the L.L.C., she nevertheless has a direct and legal interest
    in the suit which entitles her to intervene, because she stands
    to lose or gain financially depending on how the court resolves
    the dispute between the L.L.C. and Streck. We considered, and
    rejected, a similar argument in Steinhausen v. HomeServices
    of Neb.22
    19
    See § 21-110.
    20
    § 21-111(b).
    21
    § 21-136(c)(1) (emphasis supplied).
    22
    Steinhausen v. HomeServices of Neb., 
    289 Neb. 927
    , 
    857 N.W.2d 816
    (2015).
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    There, the sole member of a limited liability company
    (LLC) filed a complaint on behalf of himself and the LLC,
    alleging a third party had engaged in tortious interference with
    the business relationships or expectancies of the LLC. We held
    that members of an LLC cannot, in their own behalf, maintain
    a claim for tortious interference with the business relationships
    or expectancies of an LLC, because such a claim can be main-
    tained only by the parties to the business relationship.23 We
    specifically reasoned that even though a member of an LLC
    might experience reduced distributions from the LLC if the
    LLC’s relationships are interfered with, it did not convert the
    claim into one in behalf of the member personally.24
    [14] Here, neither the operating agreement nor the LLC
    Act gives Ryan the authority to speak for, or make decisions
    for, the L.L.C., even in matters that may indirectly affect her
    financial interests. That power is vested exclusively with the
    managers of the L.L.C. and anyone they appoint pursuant to
    their power to employ others to perform services for the L.L.C.
    The fact that Ryan, as a member of the L.L.C., may experi-
    ence reduced distributions, depending on the outcome of the
    lawsuit against the L.L.C., does not give her a direct and legal
    interest in the lawsuit sufficient to support intervention in her
    own behalf.
    Moreover, Ryan does not allege she was owed a special
    duty by the receiver separate and distinct from the duty owed
    to the L.L.C.25 Nor does she allege any financial injury or
    damage sustained in her individual capacity that would be
    distinct from that sustained by other L.L.C. members.26 Under
    these circumstances, Ryan’s membership interest in the L.L.C.
    does not give her a direct and legal interest sufficient to allow
    23
    
    Id.
    24
    
    Id.
    25
    See Freedom Fin. Group v. Woolley, 
    280 Neb. 825
    , 
    792 N.W.2d 134
    (2010).
    26
    See 
    id.
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    her to intervene in her own behalf in the action. We reject her
    arguments to the contrary.
    (ii) No Right to Intervene
    on L.L.C.’s Behalf
    Ryan also argues she has the right to intervene on behalf of
    the L.L.C. She asserts that Streck is seeking to buy the L.L.C.’s
    only asset and alleges that the interests of the L.L.C. have not
    been “fully protected” by the comanagers and receiver.
    [15] To determine whether Ryan has a direct and legal inter-
    est sufficient to allow her to intervene on behalf of the L.L.C.,
    we find guidance in the law governing whether and when a
    shareholder of a corporation may intervene on behalf of the
    corporation. This is so because we have generally treated
    actions by a member of an LLC in the same manner as actions
    by a shareholder of a corporation.27
    [16] As a general rule, a shareholder may not bring an action
    in his or her own name to recover for wrongs done to the cor-
    poration or its property.28 Such a cause of action is in the cor-
    poration and not the shareholders.29 The right of a shareholder
    to sue is derivative in nature and normally can be brought only
    in a representative capacity for the corporation.30
    The LLC Act provides a means to bring a derivative action.
    Section 21-165 states:
    A member may maintain a derivative action to enforce a
    right of [an LLC] if:
    (1) the member first makes a demand on the other
    members in a member-managed [LLC], or the managers
    of a manager-managed [LLC], requesting that they cause
    the company to bring an action to enforce the right, and
    the managers or other members do not bring the action
    within a reasonable time; or
    27
    See 
    id.
    28
    
    Id.
    29
    
    Id.
    30
    
    Id.
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    (2) a demand under subdivision (1) of this section
    would be futile.
    Ryan’s complaint in intervention alleges that she “made
    demand upon the receiver” to assert the additional claims
    and defenses she wished to raise in this litigation, but that
    the receiver refused to do so. Alternatively, Ryan alleges that
    demand upon the managers and receiver would have been
    futile, because the managers admitted they could not agree to
    a course of action and the receiver refused to assert the claims
    and defenses Ryan wished to raise in this litigation. But Ryan
    has not filed a derivative action, nor does she argue that she
    has met the requirements for bringing such an action here.
    [17] Instead, Ryan primarily relies on this court’s deci-
    sion in State v. Holmes31 to support her motion to intervene
    on behalf of the L.L.C. In Holmes, a receiver had been
    appointed to represent an insolvent corporation. A shareholder
    sought to intervene to protect the interests of the corporation,
    alleging that the corporation was “not represented” in the
    action, that the corporate officers “refuse[d] to act,” and that
    “the rights of stockholders [were], therefore, unprotected.”32
    The shareholder alleged that although a receiver had been
    appointed, it was done at the request of and for the benefit of
    the insolvent corporation’s creditors. The shareholder further
    alleged that the receiver had handled the insolvent corpora-
    tion’s assets in a “reckless and improvident manner, and that,
    if his actions are permitted to go unchallenged, he will waste
    and dissipate a large amount of valuable property belong-
    ing to the [corporation].”33 On those unique facts, this court
    observed that the rights of the shareholders were completely
    unprotected, and we held that the shareholder could intervene
    on behalf of the corporation, reasoning that “[w]here the
    corporation can not, or will not, protect the interests of the
    31
    State v. Holmes, 
    60 Neb. 39
    , 
    82 N.W. 109
     (1900).
    32
    
    Id. at 41
    , 82 N.W. at 109.
    33
    Id.
    - 787 -
    Nebraska Supreme Court A dvance Sheets
    297 Nebraska R eports
    STRECK, INC. v. RYAN FAMILY
    Cite as 
    297 Neb. 773
    stockholders, the [stockholders] may intervene for their own
    protection.”34 As such, our decision in Holmes recognized a
    very limited exception to the general rule that a shareholder
    may not bring an action in his or her own name to recover for
    wrongs done to the corporation or its property.35 But Ryan has
    not alleged anything which suggests the exception applies here
    to support her intervention.
    Unlike the facts in Holmes, Ryan has not alleged the receiver
    is completely failing to protect the interests of the L.L.C. and
    its members, nor would the record support such an inference.
    The record shows the receiver was appointed at the joint
    request of the comanagers to “address, answer, and/or defend
    the Complaint filed . . . by Streck” and has been doing so.
    Ryan’s briefing argues that the receiver could or should be
    managing the litigation differently, but she has not alleged
    that the receiver cannot or will not protect the interests of the
    L.L.C. or its members. On these facts, Holmes is inapplicable,
    and Ryan has argued no other basis for claiming a direct and
    legal interest sufficient to authorize her intervention on behalf
    of the L.L.C.
    [18] On this record, we conclude Ryan has not alleged a
    direct and legal interest sufficient to support intervention in the
    litigation between the L.L.C. and Streck. As such, we do not
    address her remaining assignments of error. An appellate court
    is not obligated to engage in an analysis that is not necessary
    to adjudicate the case and controversy before it.36
    V. CONCLUSION
    For the foregoing reasons, we affirm the judgment of the
    district court.
    A ffirmed.
    Miller-Lerman and K elch, JJ., not participating.
    34
    Id. at 43, 82 N.W. at 110.
    35
    See Freedom Fin. Group v. Woolley, supra note 25.
    36
    Johnson v. Nelson, 
    290 Neb. 703
    , 
    861 N.W.2d 705
     (2015).