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Business Divorce in NJ

Shareholder Disputes in New Jersey

A blog covering shareholder dispute law and litigation issues in New Jersey.

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Nov 07, 2019

Shareholder Dispute Litigation: When You Can Choose to Sell or Buy Your Company Shares in a Business Divorce

Attorneys often use the phrase “business divorce” to describe when business partners can no longer get along and want to be legally separated from each other, or at least one of them does.

But what happens when, like divorcing parents arguing over child custody, no one can agree who should wind up with the company?  » Read More

Sep 23, 2019

When To Involve a Customer or Vendor in Business Divorce Litigation (If Ever)

In a previous blog post, “Don’t Let Ego – Yours or Your Attorney’s – Get in the Way of a Settlement,” I made a passing reference to the strategy of taking discovery (including depositions) from company customers and vendors in business divorce litigation. » Read More

Aug 14, 2019

Don’t Let Ego – Yours or Your Attorney’s – Get in The Way of a Settlement

The truth about business divorce litigation in New Jersey is that most of them result in some sort of buyout.  An entire (expensive) litigation often takes place over related and critical issues, such as who will be the buyer and who will sell; valuation issues, including (sometimes) the valuation date; and the equalization of money (such as when one side has paid itself too much).  » Read More

Jul 12, 2019

First Amendment Victory in Dispute over Control of Religious Non-Profit Corporation

Even after nearly three decades of handling shareholder disputes, every so often I get a case that presents new challenges and never-before-seen issues. Last week, we were able to declare victory in one such case when my partner, Andrew Linden, and I successfully moved to dismiss a corporate governance case involving an Indian Temple on First Amendment grounds. » Read More

Jun 11, 2019

Bad Faith Is Not Necessary for a Business Divorce

Shareholder oppression – at least in New Jersey – does not necessarily mean you must prove that your business partner is acting maliciously.  In fact, he could be a wonderful human being who honestly believes that he is doing the right thing for the business at all times and would never intentionally hurt you or the business.  » Read More

Apr 18, 2019

Competing Companies as Oppression

When majority owners of a closely-held business engage in conduct that constitutes shareholder oppression, it comes in all shapes and sizes. One wrongful act that seems to be occurring more frequently is the creation of a competing company that excludes one or more minority shareholders. » Read More

Mar 18, 2019

Minority Shareholders Don’t Always Have a Right to Information

There appears to be an uptick in the filing of meritless corporate shareholder and LLC member oppression claims in New Jersey.  Not everything that majority shareholders do that upsets a minority owner is worth spending legal fees to pursue.

When the only allegations one can make are a failure to keep an absentee shareholder fully informed of all business transactions, and a failure to obtain that minority shareholder’s consent to such transactions, that alone is rarely a recipe for successful litigation.  » Read More

Feb 15, 2019

Kicking a Member Out of an LLC – Dissociation Under the New Jersey LLC Statute

Years ago, oppressed minority shareholders in New Jersey corporations had more protection than oppressed members of a New Jersey LLC. When the statute was revised in 2014, that changed, and LLC members now have similar remedies available to them. But there is one little-known section of the New Jersey LLC statute that makes it a more powerful tool for the majority owners than the corporate statute – the ability to “dissociate” a member. » Read More

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