Sometimes disputes arise and things don’t work out between partners, founders, members, and/or shareholders. This can happen for a variety of reasons including diverging visions for the business, or that trust has been broken. In these situations, it is important to act quickly to prevent or minimize the trauma to you and your business.
In situations where differences have not ripened into litigation and may be resolved informally between the parties, we will work to contractually resolve the impasse or dispute. If dissolution procedures are clearly outlined in a partnership agreement or other governance document, those procedures generally control. (We routinely help to devise these foundational agreements so that such procedures are outlined from the outset of an enterprise.) Without a preexisting agreement, we can work to prevent disagreements from escalating into litigation by negotiating dissolution procedures or other contractual solutions that efficiently resolve the dispute.
We have done this before on behalf of our clients who emerge from the dispute or the business better and more successful than ever before.
Corporate and partnership dissolution disputes can be disruptive to an organization, and a business may even experience resulting financial losses or damage to its reputation. So, while out-of-court resolution is preferred, when there is deadlock, ill will, or a breach of trust between business owners, sometimes the only remaining option is litigation.
Litigation in these situations is usually very intense, including the potential for equitable relief such as temporary restraining orders and/or preliminary injunctions in order to preserve the business. We work quickly on these cases to protect our clients’ interests and open the door to constructive negotiations to resolve the dispute (if possible).
We have taken our clients through the litigation process in ownership disputes and dissolution actions, including in the following situations:
- Co-owner starts a competitive business.
- Co-owner diverts business funds to separate account in his or her name.
- Co-owner fails to contribute to the business.
- Co-owner directs business to his or her other related businesses.
- Co-owner misappropriates business opportunities.
- Co-owner misappropriates business funds.
- Majority shareholder freezes minority shareholder out of company decision-making and dividends.
Our experience and success in litigation establishes our credibility and communicates the seriousness of your resolve to the other party.
If you are involved in a dispute with a co-owner, please Contact Us.