When you file business divorce litigation against your business partner, is it possible to hurt the very company you are fighting over?

As many small business owners who have gone through a shareholder oppression claim know all too well, the facts that lead to litigation may be very messy. » Read More

Many times, minority shareholders have a suspicion, but no direct knowledge, of the majority shareholder(s) improper behavior. For example, what if you believe the majority shareholders are improperly running all their expenses through the company but don’t have any proof?

First, let’s examine how and why this could be considered shareholder (or member, in the case of an LLC) oppression under New Jersey law. » Read More

I have written in the past about majority shareholders taking a business opportunity for themselves and starting a competing company as a form of shareholder oppression. However, the shoe can also be on the other foot. What do you do if you are a minority shareholder in New Jersey and you would like to start a side business? » Read More

The only thing better than winning business divorce litigation is avoiding it altogether; and making sure that you, as the majority shareholder, treat the minority shareholders fairly is the best way to do that.

Business owners, seeking to watch the “bottom line,” tend to avoid legal fees like the plague. » Read More

It’s hard to imagine a new business can succeed if the business partners don’t trust each other. But a business partner who insists “trust” means keeping yourself in the dark about company finances is waving a major red flag.

Trusting Your Business Partner

Of course, when starting a company, it is critical that the owners trust each other. » Read More

Commencing business divorce litigation – filing a suit or at least exploring a suit against your business partner – is a huge step. Obviously, starting what can be analogized to a “war” cannot be undertaken lightly. But trust between business partners is critical. » Read More

One of the most common claims of shareholder oppression in New Jersey, often leading to business divorce litigation, is the failure to pay distributions to shareholders. Obviously, there can be many reasons for not paying distributions, including, simply, an inability to do so.  » Read More

Clients in business divorce litigation often place tremendous emphasis on things that may not matter much in the long run – like who the majority shareholders use as their attorney.

Majority Shareholders’ Attorney

Quite often, when I file a shareholder oppression action against the majority shareholders and the company, the attorney who has represented the company for years will wind up representing the defendants, and my minority shareholder clients often object. » 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

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