The world has changed. The COVID-19 virus is impacting everything and everyone, and certainly only the most fortunate of businesses will not be adversely impacted. If you as a business owner have reason to believe that you are an oppressed minority shareholder with the right to file suit against your fellow shareholder(s), it is easy to conclude that you perhaps should hold off on filing that shareholder oppression claim, at least until some semblance of normalcy has been restored. » Read More
Many times, clients will take unnecessarily aggressive postures in prosecuting (or even defending against) shareholder oppression litigation, to “send a message” to the other side. Sometimes, the goal is to drive up the other side’s legal fees on the assumption that they cannot afford the fees while you can. » Read More
If you are a passive investor in a closely-held business, there are many things from which you need to protect yourself. In New Jersey, these can include excessive salaries and bonuses, personal expenses being run through the company, cash transactions never making their way onto the books, and relatives on the payroll in no-show jobs. » Read More
Mediation can be a very effective way to avoid substantial legal fees and costs in any litigation, but this settlement tool can be especially effective in business divorce litigation.
Mediation in Civil Litigation
When parties battle it out in typical civil litigation, there are often two things being decided by a court (or, sometimes, a jury) – liability and damages. » Read More
A year-and-a-half ago, on June 5, 2018, I wrote “A Valuation Expert in Business Divorce Litigation Can Help Early On” about the value of retaining a valuation expert early on. Knowing what your shares may be worth can be an invaluable tool when approaching negotiations relating to being paid for those shares, or in determining whether or not shareholder dispute litigation may be cost-effective. » Read More
Shareholder dispute litigation may often be an effective way to achieve a remedy for wrongdoing committed by the majority, such as getting paid for your shares. However, filing litigation against your business partners may not be the most cost-effective way of obtaining such relief. » Read More
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
A newly-decided case in New Jersey dictates that the court follow an operating agreement (LLC) or shareholder agreement (corporation) that has a specific provision on valuing shares when an owner is retiring or otherwise voluntarily leaving. » Read More
A common approach for oppressed minority shareholders seeking to prepare themselves for business divorce litigation is to start taking affirmative action to build a case.
In fact, I tell clients to do this all the time, but only with careful guidance. » Read More