Put Down the “Self-Help Book,” It Can Cost You in Business Divorce
Many clients try to save money by doing whatever they can to help their situation prior to seeking legal counsel. It is easy to believe that you are helping yourself - or at least not hurting yourself. But when you are not an attorney, you unfortunately don't know what you don't know.
Recently, a client indicated to his business partner - in writing - that he was going to start running all new business through a separate entity and dissolve the jointly owned LLC. He did so thinking that the threat would give him a leg up in negotiations. What he didn't realize was that this threat would wind up resulting in a fairly onerous injunction against him.
Other clients have made statements of fact that, if used against him, could only hurt his position. But having done ChatGPT research, he was convinced that all settlement communications can't be used for any reason. Unfortunately, he did not have an attorney to advise him that statements of fact contained in a settlement communication may be used in an underlying litigation. And the glaringly obvious disclaimer that chatbots like “OpenAI” are, true to its name, an open-source tool that can share its information with 3rd parties.
You aren't supposed to know the law, you’re supposed to know your business. That's why business divorce attorney exist - to help guide you through the legal issues and complications when you are having a dispute with your business partner.
Seek legal counsel at the outset. Please. If you don't, our first conversation might be about how to unwind the damage you have already done to your own case.
Please do not hesitate to reach out to me at dcroberts@norris-law.com to discuss your rights as a minority shareholder.
About the Author – Business Divorce in NJ
David C. Roberts, Chair of the firm, concentrates on complex commercial litigation, including fraud, trade secrets, and restrictive covenants, with a focus on business partnership and shareholder disputes in New Jersey. Known as business divorce litigation, these disputes often involve shareholder and LLC member oppression, embezzlement, owner freeze-outs, dissenter’s rights, and efforts to dissociate or expel an owner. Dave strives to resolve matters through mediation but is a seasoned trial attorney when needed. He frequently writes and lectures on minority shareholder disputes. With extensive experience representing both minority shareholders seeking buyouts and majority owners defending against such claims, Dave offers unique insight into the strategies and challenges of business disputes, particularly in family-owned companies.