Factors to Consider for your NY or NJ Partnership Agreement

New Jersey and New York business owners sometimes overlook one of the most important details of starting a business - creating a written partnership agreement for their New York or New Jersey business, company or firm. If you don't have a partnership agreement and a partnership dispute arises there is a good chance that the litigation will be lengthy and expensive when compared to the cost of having a business lawyer draft a written partnership agreement in the first place. One of the first and major factors to consider for a New York or New Jersey partnership is a partnership agreement which will outline how things will run and what to do in the event of a partnership disagreement, partnership dispute and partnership break-up.

Quality Pleadings are Important If you are Involved in a New York Business Dispute

When faced with business litigation as a plaintiff, the complaint will not only serve as the "initiating document" in your litigation but also the blueprint for your entire case.  Basically, the quality of the complaint prepared by your lawyer will have a decided impact on the outcome and economics of your litigation.  Poorly drafted complaints are subject to costly and time consuming "motions to dismiss" that will not only add to legal fees that you will incur but also result in an inevitable delay in the prosecution and ultimate outcome of your case. 

So what is my advice for the business owner/partner faced with the necessity of hiring a lawyer and commencing a lawsuit to protect his or her rights:

(a) Avoid shortcuts and focus on retaining a skilled "business ligation lawyer" with experience with the dispute that you are involved in,

(b) Provide your attorney with as much "relevant" factual detail and evidence as possible and

(c) Do not hide information from your attorney.  Communications between attorneys and clients are privileged and subject to protection.  If there are factors that you believe may hurt your case it is important that your lawyer know about them.

Corporate Dissolution a Critical Tool for Small Business Owners Faced with a "Partnership Dispute" with a Controlling Shareholder

Minority shareholders of small closely held New York corporations are sometimes subject to wrongful acts of their majority partners and shareholders.  That is, with voting control majority shareholders make decisions based on their own personal interest and not the interest of the company.

When faced with a partner and controlling shareholder who is misappropriating business assets or entering into agreements (such as employment agreements with family members) that are not in the best interest of the company your best course of action may be to file a petition to dissolve the corporation.

In "Important Remedy Available to Minority Shareholders of a New York Corporation: Judicial Dissolution" I discuss the remedies available to minority/twenty-percent shareholders and the grounds for dissolution.

Partnership Disputes in New York and New Jersey

When faced with a dispute with your partner - not an ordinary "business dispute" - but rather a dispute that is interfering with the operations of your business you must consider the necessary steps to preserve your equity and ownership interests.  In my article "Partnership Lawsuits in New York and New Jersey: Important Factors to Discuss with Your Lawyer" I outline some of the important factors and legal decisions that a business owner should discuss with his or her business lawyer.  One important factor that I discuss is my preference for a negotiated settlement (of a partnership dispute) compared to a protracted and expensive lawsuit.  However, it is critical to note that "negotiations" only work if you and your partner are in an equal bargaining position, i.e., you are and continue to be involved in the day-to-day business operations, you have access to the books and records of the business and you maintain daily communications with your customers and clients.  If you do not possess equal bargaining power (i.e., you have been locked-out or are denied access to books and records) negotiations may be pre-mature and the best course of action may be the commencement of a lawsuit seeking (a) a preliminary injunction and (b) an accounting.  Once an injunction is obtained you negotiating position will be greatly enhanced and so will the opportunity to reach a balanced settlement.
 

Factors to Consider When Hiring a Business Lawyer in New York or New Jersey

One of the unique benefits of being a "business" lawyer (compared to, say, a negligence or matrimonial lawyer) is that that I am afforded the advantage of observing and learning from my clients.  That is, in the process of representing and defending the business interests of my clients, I get to observe (and learn from) the successful work ethic and business principals employed by my clients each and every day.  One critical factor reinforced by each and every one of my clients is that a successful business must be focused on delivering "client/customer value".  

Applying this critical business principal to legal services, it is clear that the delivery of "valuable" legal services requires the constant delivery of timely and cost effective services that can only be delivered by a specialized lawyer.  In a post titled "Measuring Client Value" on my franchise law blog, I discuss the critical factors that should be evaluated in assessing and delivering legal services.  As discussed in my post, "client value" requires the balancing of the following four factors;

"Client Value" as a matter of fundamental business principals, can only be achieved by evaluating the interaction and balance between (a) the legal fees charges, (b) the timeliness of the legal services rendered, (c) the quality of the legal services rendered, and (d) the priority of the legal project as measured by the significance of the client's business systems and/or goals that are supported or protected by the underlying legal services."

For more information about my perspective on "client value" and factors that business owners and advisors should consider when hiring a New York or New Jersey business lawyer, I recommend that you read "Measuring Client Value" for a more in depth analysis.