Intra-company Ownership Disputes & Business Divorce

Intra-company disputes involving shareholders, LLC members and business partners are often difficult in that they often involve disputes among close friends and even family relating to the ownership and operation of jointly owned business enterprises. These disputes typically involve complicated issues relating to fiduciary and contractual duties among the business partners, as well as complex issues relating to the companies’ financial affairs and management.

 

Our team of attorneys have a great deal of experience litigating such matters to verdict. In doing so, they have developed a deep understanding of the law in this area, as well as a strong command of the financial issues that affect businesses today. Some legal solutions do not always amount to practical business solutions. Intra-company business disputes can lead to the demise of an otherwise successful companies if both elements are not properly addressed. Lauletta Birnbaum will help your business reach an outcome that will ultimately meet your personal and business objectives.

 

Our team has extensive experience handling matters involving;

  • Breach of Fiduciary Duty
  • Owners’ Rights including Disputes involving Claims of Minority Oppression
  • Waste or Mistreatment of Company Assets
  • Self-Dealing
  • Unfair Competition and Restrictive Covenant Litigation
  • Executive Compensation
  • Buyout Agreements

Sometimes business isn’t “just business” and the only option left to resolve the dispute between business partners is Business Divorce. Business Divorce can often create as much emotional drama as a divorce between spouses. Our team is well versed in knowing when and why business partners should separate their interests, and how best to approach such a separation.

 

Additionally, our lawyers are well-versed in trying such matters to verdict. Unlike many law firms, our lawyers have successfully tried dozens of intra-company disputes to verdict when the companies’ owners cannot reach common ground by amicably resolving their intra-company issues. To do so, litigants in an intra-company dispute must not only present the case evidence, but they must also work with experts like forensic accountants, business appraisers and valuation experts. To skillfully try an intra-company dispute, a business owner’s legal team must have experience dealing with these issues and presenting such evidence at trial. Lauletta Birnbaum’s trial lawyers are well-experienced in such matters.

Shareholder Disputes and Business Divorce Highlights

 Results may vary depending on your particular facts and legal circumstances.

Lead trial counsel in a lengthy Chancery Court trial involving a shareholder dispute over the ownership of a Canadian hunting lodge that resulted in the firm’s client winning shareholder control over the lodge, as well as winning a judgment of almost $1.0 million against the defendants in that case.

Lead trial counsel in a shareholder oppression suit by 50% owners of several family-owned construction companies and related entities that resulted in a significant verdict against the adverse parties, including findings of shareholder oppression, after a nearly 50-day Chancery Court trial.

Lead trial counsel in a commercial arbitration involving claims of fraud, breach of fiduciary duty, breach of contractual warranties and related business tort claims stemming from a $30 million merger transaction that resulted in a defense verdict in favor of Mr. Lomax’s purchaser/client on the claimant/seller’s claim for $6.0 million.

Lead trial counsel for a majority shareholder in a corporate governance dispute involving an international manufacturing company against a minority shareholder that resulted in a favorable settlement for Mr. Lomax’s client.

Lead trial counsel for a start-up internet store in obtaining injunctive relief compelling former employees and minority owners to return commandeered websites back to the start-up company.

Lead trial counsel for a minority shareholder of a construction company in a shareholder dispute involving claims of shareholder oppression, breach of fiduciary duty and duty of loyalty, fraud, and breach of contract, resulting in a significant seven-figure buy-out of the client’s minority interests in the defendant company.

Lead trial counsel in a commercial arbitration matter involving an intracompany dispute between a client and the client’s former co-member of a limited liability company, as well as the limited liability company’s lenders and former attorneys, relating to the company’s failure to pay certain bank indebtedness. Arbitration award included the client being exonerated for the company’s bank indebtedness and a six-figure award of attorneys’ fees against the client’s co-defendants in the case.

Lead trial counsel in the representation of minority shareholders of a closely held industrial company in an action against the majority shareholder under the Oppressed Minority Shareholder Act, as well as assertions of breach of fiduciary duty, breach of contract, violations of the implied covenant of fair dealing, misappropriation and similar business tort claims, resulting in a multimillion-dollar acquisition of the clients’ interest in the corporation.

Represented a 50-percent owner of a closely held corporation in an action against the other 50-percent owner of the corporation resulting from the defendant’s alleged wrongful diversion of a substantial portion of the corporation’s business to a newly formed start-up corporation formed by the defendant. Representation resulted in a substantial buy-out of the client’s ownership interest in the corporation and the client’s preservation of his right to compete with his former shareholder.

Represented a minority shareholder of a closely held corporation in an action arising from the majority shareholder’s breach of fiduciary duties to the plaintiff and dissipation of the corporation’s assets. Obtained a preliminary injunction that included the imposition of a custodial receivership.

Represented several family members in an action against other family members relating to the family’s collective ownership of a real estate business worth tens of millions of dollars. The case involved claims of fraud, state and federal civil RICO violations, breach of fiduciary duty, misappropriation, and other claims for equitable relief and damages. This matter resulted in the division of tens of millions of dollars of real estate assets amongst the party litigants.