News & Analysis as of

Business Divorce

Bradley Arant Boult Cummings LLP

Keeping the Family Harmony Playing Sweetly: Risk Avoidance for Owners of Family-Owned Companies

Business divorces take place in all types of private companies, including those owned and operated by family members. But families that are willing to engage in thoughtful planning can head off some of the internal conflicts...more

ArentFox Schiff

Accessing Privileged Documents in Illinois Ownership Disputes

ArentFox Schiff on

Business divorces are often messy. The reasons for business divorces vary – personality-driven disputes, disagreements over business direction, or timing and distribution of earnings. Whatever the reason, when controlling...more

Bradley Arant Boult Cummings LLP

Preserving Business Value in High-Net-Worth Divorces: The Mutual Benefits of Adopting a Win-Win Approach

Entrepreneurs are incredibly devoted to the success of their business, but even a thriving company may be severely impacted by a high conflict marital divorce. When a couple decides to part ways, the ripple effects can extend...more

Farrell Fritz, P.C.

Cross-Country Valuation Check-Up: Discounts, Buy-Sell Agreements, and Ambiguity Potholes

Farrell Fritz, P.C. on

While there is tremendous diversity from state to state when it comes to statutory and judge-made law in business divorce cases, business valuation principles are—with a few notable exceptions—far more homogenous.  So it...more

Farrell Fritz, P.C.

Recent Appellate Rulings Address Novel Issues in General Partnership Disputes

Farrell Fritz, P.C. on

The era of the old-fashioned general partnership long ago petered out, largely displaced by subchapter S corporations and, in the last few decades, limited liability companies, both of which allow pass-through taxation...more

Farrell Fritz, P.C.

A Gift Horse with Rotten Teeth: When Equity Bequests Violate Transfer Restrictions or Buy-Sell Agreements

Farrell Fritz, P.C. on

How often do hopeful beneficiaries of a last will and testament expect to receive what they think will be a valuable bequest of a business interest, only to find their joy turn to despair when they discover the bequest...more

Bradley Arant Boult Cummings LLP

The Founder’s Dilemma: Stoking the Company’s Fire Without Forfeiting the Founder’s Interest in the Business

Fast-growing private companies are exciting to observe as outsiders, but on the inside the company founder has the challenge of securing enough capital to fuel the rapid growth of the business. The company’s continuous need...more

Farrell Fritz, P.C.

Conditional Grants of Membership Interests Are a Roadway to Courtroom Conflict

Farrell Fritz, P.C. on

In the world of business divorce litigation, this summer saw everything but a slowdown.  We witnessed (and blogged about) Justice Crane cap a long-running fair value proceeding with helpful guidance on appraisals and...more

Farrell Fritz, P.C.

Freedom (But with Consequences): In Delaware, Absolute Litigation Privilege Inapplicable to Nullify Contractual Non-Disparagement...

Farrell Fritz, P.C. on

The absolute litigation privilege is a long-standing legal principle that statements made during the course of a judicial proceeding by participants in the proceeding (whether parties, attorneys, witnesses, or judges) are...more

Farrell Fritz, P.C.

Breach of Fiduciary Duty: A More “Lenient Standard” for Damages?

Farrell Fritz, P.C. on

If Sisyphus were a judge, he’d be assigned the Fuks case. Fuks began on December 26, 1996. Fire up your mental time machine, travel back in time, and picture what was going on in your life those many years ago....more

Farrell Fritz, P.C.

Prudent Management or Financial Starvation: Can Minority Members Compel the Majority to Make Distributions?

Farrell Fritz, P.C. on

“It all started when the distributions stopped.”  In my travels as a business divorce litigator, I’ve seen many disputes between LLC co-owners that begin with that message.  A minority owner is content to remain a “silent...more

Farrell Fritz, P.C.

Summer Shorts: An Unusual Application of LLC Law § 608 and Other Decisions of Interest

Farrell Fritz, P.C. on

Welcome to this 14th annual edition of Summer Shorts. This year’s edition features brief commentary on three recent decisions by New York courts in business divorce cases. The featured cases involve a suit pitting three...more

Bradley Arant Boult Cummings LLP

My Partner Just Sued Me: Strategies Majority Owners Should Consider in Defending Claims Filed by Private Company Investors

Conflicts between co-owners in private companies are common, but the vast majority are worked out through dialogue and negotiation. When these internal conflicts cannot be resolved, however, minority investors may file suit...more

Farrell Fritz, P.C.

When It Talks Like a Member, Walks Like a Member, Acts Like a Member… But Isn’t a Member: First Impression Chancery Decision Rules...

Farrell Fritz, P.C. on

A solid succession strategy is a critical element of corporate planning, but one that is all too often sidelined until it is too late. Under the glow and excitement of starting and growing a business, who wants to talk about...more

Lowenstein Sandler LLP

All in the Family: Succession Issues in Family-Owned Businesses

Lowenstein Sandler LLP on

On this episode of “Splitting Heirs,” Warren K. Racusin talks with Lowenstein partner Nick San Filippo IV, Chair of the firm’s Business Divorce practice, and Jeff Savlov, a partner in the family business and wealth consulting...more

Farrell Fritz, P.C.

Did Chancery Court Just Crack Open the Door to Equitable Dissolution of LLCs?

Farrell Fritz, P.C. on

Delaware Chancery Court’s contractarian approach to all things LLC, embedded statutorily in Section 18-1101(b) of the Delaware LLC Act (“It is the policy of this chapter to give the maximum effect to the principle of freedom...more

Farrell Fritz, P.C.

Special Considerations for Law Firm Breakups

Farrell Fritz, P.C. on

Just a few weeks ago, I commented on a recent uptick in disputes centered on the breakup of professional services firms. In those disputes, we expect that the demands of the legal, accounting, and medical professions draw...more

Farrell Fritz, P.C.

Dissolution Undone

Farrell Fritz, P.C. on

Business divorce and non-judicial (a/k/a voluntary) dissolution of a business entity rarely intersect. But when they do, or even in a non-business divorce setting, if a business owner needs to rescind a certificate of...more

Bradley Arant Boult Cummings LLP

The Intersection of Business in Marital Divorce Cases: Business Issues That Often Arise in Family Law Proceedings 

When divorcing couples hold ownership interests in private companies as part of their marital estate, they will have to address a number of business issues related to these interests in their divorce settlement. Planning...more

Farrell Fritz, P.C.

Court of Appeals Bolsters the Internal Affairs Doctrine, Takes a Stroll Through Scottish Fiduciary Law

Farrell Fritz, P.C. on

It’s not every day that New York’s highest court considers a question impacting the business divorce cases that we typically litigate.  And even when an interesting business divorce issue does make its way up to Albany, it’s...more

Bradley Arant Boult Cummings LLP

Opening Up the Business Partner Time Capsule: Partnership Lessons Shared by Owners and Investors

Hindsight can be a wonderful thing, especially if hard-earned lessons are adopted by others who are willing to learn from past mistakes. When private company owners and investors share with me some of the wisdom they have...more

Farrell Fritz, P.C.

It Takes More Than a Litigation Tsunami Between Hostile Members to Obtain Judicial Dissolution of a Realty-Holding LLC

Farrell Fritz, P.C. on

Count ’em: At the time A sued B for judicial dissolution of one of their several jointly owned companies, there are not one, not two, not three, but eight pending lawsuits between the two 50/50 business partners who first...more

Farrell Fritz, P.C.

Oral Joint Ventures: The Wild West of Business Associations

Farrell Fritz, P.C. on

The lion’s share of cases we write about on New York Business Divorce involve consummated business relationships where the warring parties have clearly chosen the particular entity form governing their relations, whether it...more

Bradley Arant Boult Cummings LLP

I Need to Sue My Longtime Business Partner(s): What Pitfalls Should I Consider Before Filing Suit

As a business trial lawyer representing private company owners and investors in business divorce disputes and civil litigation for many years, my experience teaches that business partners should approach litigation with...more

Farrell Fritz, P.C.

When Law Firms Break Bad: The Valuation Battle Over Contingency Fees and Crypto Tokens

Farrell Fritz, P.C. on

As both a practitioner and a close follower of New York business divorce caselaw, I’ve seen a recent uptick in disputes centered on the breakup of professional services firms and cryptocurrency businesses. Perhaps the crypto...more

410 Results
 / 
View per page
Page: of 17

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide