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Business Divorce

DarrowEverett LLP

Strong Operating Agreement Is Best Defense (and Offense) For Founders

DarrowEverett LLP on

Founding a business with a partner is similar to getting married in many ways; it is a long-term commitment with your financial future and livelihood at stake. Unfortunately, business partners often stop getting along at...more

Stradling Yocca Carlson & Rauth

California Business Divorce: You Might Have to Get a Business Divorce in Delaware Without a Jury

If your company documents require disputes to be litigated in the Delaware Court of Chancery, you may have to resolve your business divorce without a jury trial, even if California law would otherwise guarantee one....more

Davidoff Hutcher & Citron LLP

When To Seek Judicial Dissolution For Your Restaurant Business

Running a restaurant with business partners can be a rewarding venture, but partnerships don’t always go as planned. Disagreements, financial troubles, and breaches of fiduciary duty can create conflicts so severe that...more

Farrell Fritz, P.C.

Summer Shorts: A Trio of Recent Decisions of Interest in LLC Member Disputes

Farrell Fritz, P.C. on

Welcome to this 15th annual edition of Summer Shorts. This year’s edition features brief commentary on a trio of recent decisions by New York courts in business divorce cases, all involving LLCs, including: A relatively...more

Bradley Arant Boult Cummings LLP

Beware of Wolves in Sheep’s Clothing: Accepting PE Investments May Create Unforeseen Problems for Private Company Majority Owners

As private companies grow, they need to secure capital to support their efforts to provide more (and/or better) products and services to their clients. The need for emerging companies to obtain growth capital often leads the...more

Farrell Fritz, P.C.

On Camera: My Recent Video Interview on, What Else, Business Divorce (Part 2)

Farrell Fritz, P.C. on

This post features Part 2 of a recent two-part program to be later aired on New York City public access cable in which I was interviewed by Sandra Schulte on an array of topics in the business divorce universe. Sandra has...more

Bradley Arant Boult Cummings LLP

When Saying Goodbye Is Not Forever: Ex-Spouses Who Continue as Business Partners After Divorce

When a married couple enters into a divorce proceeding, they generally expect to end things in a final decree that fully divides all of their marital assets. But when they fully own or have a large interest in a closely held,...more

Farrell Fritz, P.C.

On Camera: My Recent Video Interview on, What Else, Business Divorce (Part One)

Farrell Fritz, P.C. on

I recently had the pleasure of being interviewed by Sandra Schulte at the media production studios of the Manhattan Neighborhood Network located near the Javits Center. Sandra, whom I met at a CLE program where I was a...more

ArentFox Schiff

How Boilerplate Agreement Advancement Clauses Can Transform Ownership Disputes

ArentFox Schiff on

Indemnification and advancement clauses are often seen as mere boilerplate language in a company’s governing documents, routinely copied from one form agreement to another. However, advancement clauses may be important...more

Bradley Arant Boult Cummings LLP

The Business Valuation Blues: Sing a Different Song When the Valuation Experts Disagree

One of the thorniest issues private company owners and minority investors may be required to confront in going through a business divorce is determining the value of the minority interest being purchased. It is not unusual...more

Stradling Yocca Carlson & Rauth

California Business Divorce: Partner Fraud and Personal Liability: Important Lessons from Bartenwerfer v. Buckley

The Story Behind the Case - Kate and David Bartenwerfer started their business with a straightforward plan. The couple decided to renovate and sell a house they jointly owned in San Francisco....more

Farrell Fritz, P.C.

A Tardy Plaintiff’s Best Friend: The Open Repudiation Doctrine

Farrell Fritz, P.C. on

Pre-answer motions to dismiss for untimeliness are exceptionally common in business divorce litigation. Statute of limitations analysis can be deceptively simple in theory, but elusively difficult in practice, even for...more

Farrell Fritz, P.C.

Beyond Fair Value: When Shareholder Oppression Demands Interest and Damages

Farrell Fritz, P.C. on

Shareholder oppression has long been a favorite topic of mine—for good reason.  A cornerstone of business divorce litigation, a claim of minority shareholder oppression under BCL 1104-a often invites creative argument over...more

Stradling Yocca Carlson & Rauth

California Business Divorce: California Court Recognizes LLC Member Lists as Trade Secrets in Recent Ruling

California Court Recognizes LLC Member Lists as Trade Secrets in Recent Ruling - When an LLC member suspects the company is playing favorites with redemption requests, how much access should they have to the membership rolls...more

Nossaman LLP

Corporate Divorce – Preventing and Managing the Break-Up of a Business Partnership

Nossaman LLP on

In this episode, Kimberly Kamkar is joined by corporate law partners Patrick Richard, Anna Tang and Doug Schwartz to explore the complexities of business "break-ups." They discuss essential practices for future planning, the...more

Farrell Fritz, P.C.

A Message of Acceptance from the Garden State

Farrell Fritz, P.C. on

This week’s New York Business Divorce takes us to the Garden State for a delightfully-written, post-trial decision by retired, recalled Appellate Division Judge Clarkson S. Fisher, Jr....more

Farrell Fritz, P.C.

Demand Futility, Dissolution, and Transfer Restrictions: Spring Blooms Fresh Developments in LLC Litigation

Farrell Fritz, P.C. on

In addition to blooming trees and longer days, spring in New York has ushered in a fresh crop of noteworthy decisions on intra-LLC disputes.  Headliners include a boost to members’ rights to compel an accounting courtesy of...more

Bradley Arant Boult Cummings LLP

Weathering the Business Divorce Storm: Charting Safe Passage for Both Sides of the Transaction

Business divorces often involve turbulence as business partners go through this process. But partners who plan ahead can navigate through their business divorce to avoid capsizing the company or frustrating their personal...more

Farrell Fritz, P.C.

Business Appraiser Liability? That’s a New One.

Farrell Fritz, P.C. on

We’ve written about accountant liability. We’ve written about bookkeeper liability. A carefully crafted complaint can state viable claims for either. But business appraiser liability?...more

Patton Sullivan Brodehl LLP

LLCs Can Assert Offensive Claims Against Members

In “business divorce” litigation involving LLCs, it is common to see a disgruntled LLC member asserting claims against the LLC’s manager. Depending on the type of harm alleged, those claims might be asserted directly (by the...more

Offit Kurman

How Buy-Sell Agreements Can Help Prevent a Messy Business Divorce

Offit Kurman on

Just like any kind of relationship, not all business partnerships are built to stand the test of time. They can sour just as easily as a romantic partnership or friendship as vision and long-term goals diverge, financial...more

Bradley Arant Boult Cummings LLP

Seeking a Revenge Premium in Business Divorce: Resisting the Urge to Plunge Headfirst Into Quicksand

When longtime business partners in private companies go through a business divorce, emotions often run high. One or both of the partners may be seeking a “revenge premium” in the business divorce process based on their...more

Farrell Fritz, P.C.

LLC Member States Direct Claims Arising from Machiavellian Manager’s Tactical Bankruptcy Petition

Farrell Fritz, P.C. on

“There is only going to be one winner here, and it’s not going to be you—give in while there is something still left in it for you,” said one LLC member to the other. With co-owners like that, who needs enemies?...more

Bradley Arant Boult Cummings LLP

Splitting the Pie Fairly: Using Creativity to Achieve a Successful Business Divorce

Throwing the baby out with the bath water is a pithy expression that suggests exercising caution when business partners in private companies are seeking to achieve a business divorce. The majority owner and the departing...more

Farrell Fritz, P.C.

Winter Case Notes: Nice Try, But the Agreements Say What They Say

Farrell Fritz, P.C. on

Spring is soon upon us. March Madness is at our doorstep. The Formula 1 season is underway. Baseball season will be in full swing shortly. And my allergies are already in bloom....more

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