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Business Litigation
- Factors to Consider for your NY or NJ Partnership Agreement
- Quality Pleadings are Important If you are Involved in a New York Business Dispute
- Corporate Dissolution a Critical Tool for Small Business Owners Faced with a "Partnership Dispute" with a Controlling Shareholder
- Partnership Disputes in New York and New Jersey
- Factors to Consider When Hiring a Business Lawyer in New York or New Jersey
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Business Litigation
- Factors to Consider when Dealing with a Partnership or Shareholder Dispute in New Jersey
- New York Partnership Disputes: Fiduciary Duties and Obligations Between Partners and Shareholders
- Preliminary Injunctions and Temporary Restraints in New York and New Jersey
- The Significance of "Liquidated Damages" Provisions and How to Defend them in Litigation
- "Promissory Fraud" and Its Significance in Business Disputes in New York
Partnership Lawsuits in New York and New Jersey: Important Factors to Discuss with your Lawyer
The unfortunate reality for far too many business owners in New York and New Jersey is that the greatest threat to your business may not be the actions of your competitors but rather a dispute with your business partner and co-owner. After years of hard work and success partnerships are sometimes tested due to disputes over business decisions, cash flow shortages and even economic pressures caused by a change in a partner's "personal life". If you are experiencing a serious dispute with your partner that is escalating and affecting your business operations you must implement immediate measures to secure your business and the equity interests that you have worked long and hard to create.When faced with a partnership dispute in New York or New Jersey, important factors that you should discuss with your business lawyer include:
- The Tactical Role of Litigation in Partnership Disputes. Although it may sound counter-intuitive, when faced with a partner misappropriating funds, misappropriating business assets or diverting business, early and aggressive action (that is starting a lawsuit and seeking an injunction) will not only serve to protect your business interests but, long term, will reduce your overall litigation costs and increase the likelihood of reaching a negotiated settlement. When it comes to partnership disputes indecisive and half-hearted measures only lead to prolonged, non-productive litigation and unnecessary legal fees. Decisive action will preserve your business and expedite the settlement process.
- Injunctions are Critical Remedies that Must be Evaluated. Partnership disputes typically involve an imbalance of control. That is even when dealing with equal partners, one partner typically has more "hand's on" control over the businesses day-to-day operations. When a dispute arises the partner "in control" may misappropriate assets or attempt to exclude his or her other partners from business decisions. When this occurs and you are the partner being "locked-out" it is critical that you discuss the role of "injunctive relief" and how a New York or New Jersey court imposed restraining order may get you back in the door and in a better negotiating position.
- Ultimately a Negotiated Settlement (not an Expensive Trial) will Produce the Best Resolution. Leverage is critical to the successful resolution of partnership disputes. As indicated in the prior points this leverage and the "re-balancing of the playing field" can only be achieved through immediate action and, when appropriate, the commencement of litigation and the imposition of a court imposed injunction. However, once the playing field is leveled and a position of strength is established, in most instances, it is far more beneficial reach an out-of -court negotiated settlement than proceed with a protracted, expensive and uncertain trial.
If your business is stable and your dispute does not involve the misappropriation of assets, an emergency situation or a partner "lock-out", settlement discussions (not litigation) should be the preferred course of action. To be successful, negotiations should be based on a well defined strategy that your lawyer establishes after evaluating your partnership agreement / shareholder agreement, by-laws and corporate agreements.
Charles N. Internicola is an accomplished New York and New Jersey business litigation attorney who represents and defends the business interests of his clients in lawsuits involving business disputes, partnership disputes, trademark infringement and unfair competition. If you are involved in a business dispute and require the services of a seasoned business litigation attorney in New York or New Jersey, contact Charles N. Internicola, to discuss the litigation services that he offers. As a business attorney, Charles is the author of "An Entrepreneurs Guide to Purchasing a Business" and he is the publisher of the "New York Franchise Law Blog".
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. The content of this website is subject to the Copyright of its author, Charles N. Internicola, Esq.
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