NJ Shareholder Disputes: Can a Lawsuit Save You Money?

A Cost Effective Lawsuit?

If you are faced with a New Jersey Shareholder Dispute‚ that is you are fighting with your business partners‚ of course it would be better to reach an amicable resolution and avoid unnecessary lawsuits. While there are many shareholder and partnership disputes that we settle without litigation – if the stakes are high – you must be prepared to conduct a "cost-benefit" analysis of starting a lawsuit.

Human nature is extremely predictable and when it comes to partnership disputes with high stakes (i.e.‚ misappropriated assets‚ corporate lock-out or a non-performing partner) much more often than not your best return on investment will come from an early and aggressive lawsuit that with the right strategy may be the motivating factor for all sides to come to the table and reach a fair and rational settlement.

Why Would a Lawsuit Be More Cost-Effective Than a Negotiated Settlement?

Because your partnership and shareholder dispute was not created overnight and‚ most likely‚ has been building over many months‚ if not years. You have known the dispute was coming and if there is alot at steak right now one partner will be attempting to better his or her position and advantage. Sitting down and attempting to negotiate (or exchanging endless attorney letters) may do nothing other than to delay the process and give one partner more time to gain an advantage.

Look this is not always the case but I can tell you that when faced with a serious dispute litigation is cost effective. You see‚ with the right strategy and accelerated lawsuit (involving an emergency motion for injunctive relief) will rebalance the playing field or if used offensively will allow you to enhance your future negotiating position. More often than not this aggressive approach actually results in settlement and minimizes the harm to your underling business.

What Else Do You Need to Know About New Jersey Shareholder Disputes?

Well‚ in "How to Protect your NJ Business When Faced with a Shareholder Dispute" we discuss important factors to discuss with your shareholder dispute lawyer and‚ most important‚ I discuss why a resolution will eventually be reached. But you must guide this resolution process in your favor.