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Business Disputes Corporate Dissolution

Farrell Fritz, P.C.

Corporate Dissolution Petition Hits Back Burner in Favor of Earlier Filed Claims for Money Damages

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The shareholder oppression claim under BCL 1104-a has a unique relationship with claims for money damages. A minority shareholder petitioning for dissolution under BCL 1104-a must establish that the majority shareholders...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

IR Global

Navigating Corporate Divorce With Michael Einbinder

IR Global on

Join long-standing Digital Partner and IR Global member Michael Einbinder in his latest conversation with Jennifer Riggins as he helps you navigate the rocky landscape of Corporate Divorce. Be it a breach in fiduciary duty,...more

DarrowEverett LLP

Buyouts of Closely Held Shares: All’s Fair Value in Love and War

DarrowEverett LLP on

In matters of corporate divorce, deadlock, majority oppression, or usurpation of corporate opportunities are all well-tread grounds for disputes between co-owners of closely held entities. These disputes often culminate in...more

Farrell Fritz, P.C.

New York LLC Caselaw’s Greatest Hits

Farrell Fritz, P.C. on

I recently had the privilege of speaking to an audience of judges of the New York Supreme Court Commercial Division at Fordham Law School’s Eileen Bransten Institute on Complex Commercial Litigation. Naturally, the topic was...more

DarrowEverett LLP

Til Death Do Us Part? Corporate Divorce Can Be Messy, But Not for the Prepared

DarrowEverett LLP on

While no one enters a partnership expecting it to end in divorce, no one is immune to failure. In the world of business, partnerships can sometimes mirror the complexities of personal relationships. Often, it is the “we’ve...more

Farrell Fritz, P.C.

Second Department Rejects Private Auction for Deadlocked Corporation

Farrell Fritz, P.C. on

Resolving ownership disputes with a buyout at auction has a tempting simplicity.  The buyout gives the owners the divorce they need.  And the auction—particularly a blind auction, in which no owner is aware of the other’s...more

Patterson Belknap Webb & Tyler LLP

Commercial Division Rejects Co-Owner's Petition for Judicial Corporate Dissolution Amidst Protracted Unwinding of a Bronx Family...

New York Business Corporation Law (“BCL”) sections 1104 and 1104-a permit shareholders holding a certain percentage of shares in a corporation to petition for judicial dissolution of that corporation....more

Farrell Fritz, P.C.

A Cross-Country Road Trip of Elections to Purchase in Dissolution Proceedings

Farrell Fritz, P.C. on

When a minority shareholder petitions for dissolution of a corporation on the grounds of oppressive or illegal conduct (see BCL 1104-a), Section 1118 of New York’s Business Corporation Law allows the corporation or any other...more

Farrell Fritz, P.C.

A Litigation Odyssey

Farrell Fritz, P.C. on

Litigated business breakups are often highly intense and emotional for the participants. The intensity and emotion multiply when the litigants are close family members....more

Stradling Yocca Carlson & Rauth

California Business Divorce: Why Business Partners Split—and What to do About it in Your Operating Agreement

In many instances, an irreconcilable dispute leads business partners to break up, and sometimes end up in litigation. Even when owners get along great, life events such as failing health may force someone to depart the...more

Farrell Fritz, P.C.

Dueling Dissolution Petitions Beget Dissolution Without Consideration of Alternate Remedies

Farrell Fritz, P.C. on

This blog frequently covers cases considering a shareholder’s request to dissolve a corporation under New York’s oppression-based corporate dissolution statute, BCL 1104-a.  That statute allows a shareholder to petition for...more

Farrell Fritz, P.C.

Minority Shareholder’s Petition to Dissolve Seltzer Business Loses Its Fizz

Farrell Fritz, P.C. on

In 1950, Sam Hoffman and his two sons, Hyman and Melvin, founded Brooklyn-based Cornell Beverages, Inc. to manufacture and distribute seltzer. Those were the days when “seltzer men” made weekly home deliveries of cases of...more

Farrell Fritz, P.C.

Disputes Abound When Law Firms Dissolve

Farrell Fritz, P.C. on

Some of the most complex and hotly-contested business divorce litigation arises from the dissolution of law firms. Perhaps law firm dissolutions are prone to litigation because many are organized as partnerships or LLPs, and...more

Farrell Fritz, P.C.

The Evidenceless Petition to Dissolve

Farrell Fritz, P.C. on

It’s hard not to feel sorry for the petitioner in Fernandes v Matrix Model Staffing, Inc., Decision and Order, Index No. 160294/2021 [Sup Ct, NY County Apr. 20, 2022]. In Fernandes, Manhattan Supreme Court Justice Frank...more

Stradling Yocca Carlson & Rauth

California Business Divorce: The Unfortunate, and Common, Reality of Defamation After a Business Divorce

So you carefully negotiated a dissolution or separation from your former business partner in what seemed like an amicable parting… but then you wound up in litigation anyway. “How is that possible?” you ask. Unfortunately, it...more

Tarter Krinsky & Drogin LLP

Law Brief ®: Alan Gaynor and Richard Schoenstein Explore Business Divorce

On the latest Law Brief ® episode, Corporate & Securities Partner Alan Gaynor joins Partner and Host Rich Schoenstein to discuss business divorces for closely-held corporations. They explore how the courts typically approach...more

Farrell Fritz, P.C.

On the Menu: Steak and Equitable Dissolution

Farrell Fritz, P.C. on

Fine dining and business divorce crossed paths in a recently decided case featuring a lengthy battle between co-equal ownership factions of the corporation that operates Delmonico’s, the renowned Manhattan restaurant...more

Farrell Fritz, P.C.

Court Rejects Oppressed Shareholder’s Bid for Dissolution or Buy-Out, Finds Money Damages Sufficient

Farrell Fritz, P.C. on

A minority shareholder petitioning for dissolution under BCL § 1104-a must establish, by a preponderance of the evidence, that the majority shareholders have engaged in “illegal, fraudulent or oppressive actions,” (BCL §...more

Farrell Fritz, P.C.

Dissolve for Failure to Elect a Board? Better Demand an Election First

Farrell Fritz, P.C. on

New York’s Business Corporation Law (BCL) provides three pathways for non-controlling shareholders to achieve involuntary (judicial) dissolution. ...more

Farrell Fritz, P.C.

Resignation: Antidote for Internal Dissention and Deadlock?

Farrell Fritz, P.C. on

There are countless New York corporations in which the owners are equal 50/50 shareholders and co-members of a two-member board. Where one sues the other for judicial dissolution, and the ground for dissolution is “deadlock”...more

Farrell Fritz, P.C.

Business Divorce in the Surrogate’s Court

Farrell Fritz, P.C. on

Like business divorce, New York trusts and estates litigation (“T&E”) is a highly specialized niche of the law. T&E litigators have their own universe of substantive law, their own set of procedural rules – the Surrogate’s...more

Farrell Fritz, P.C.

The Brothers Cortazar Wage War Once Again

Farrell Fritz, P.C. on

Two years ago, we wrote about a bitter rivalry between two brothers, James and Vincent Cortazar, over their ownership and management of a single-asset real estate enterprise, 47th Road LLC, which owned an apartment building...more

White and Williams LLP

Delaware Chancery Court Relies Upon Judicial Dissolution Power to Break Management Deadlock

White and Williams LLP on

Shareholder agreements and operating agreements contain a variety of knobs and levers, many of which a company’s founders hope never to invoke. Chief among them are the provisions for resolving disputes or deadlocks in...more

Farrell Fritz, P.C.

Minority Shareholder Oppression in the #MeToo Era

Farrell Fritz, P.C. on

In the last two years, fueled by a series of high profile cases involving media executives, entertainers, and other public figures, #MeToo has gained worldwide recognition as a symbol of the burgeoning movement against sexual...more

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