Private Business Disputes

One of the greatest freedoms we enjoy as Americans is the freedom to acquire wealth through the creation of a business.   Often, the dream of one person ignites the passion to create a new product, offer a service or improve on something already out on the market.  Whether it be an online start up, private jet charter service, a restaurant, a professional association or an insurance agency, making the dream a reality takes planning, strategy and support.  Whether you are building a business, buying one or taking a company to the next level, the journey creates the opportunity for collaboration, partnership and investment.

There are thousands of moving parts and, usually, there is no blueprint for success.   That said, no matter where you go, there you are, and this old adage runs true for people working together in business.   Undoubtedly, people in business usually start off with the best of intentions.  Certainly, there are those who begin business relationships dishonestly looking to scheme and defraud.  At the end of the day, business relationships are always personal no matter what is said in the movies and human nature bends business relationships over time where one person or group of people get the short end of the stick by the business’ bully or bullies.

Regardless of how it may have started, when a business deal, partnership, investment or relationship gets lopsided in a private corporation, it is time to assert your voice.  Business disputes don’t get wished away and contracts defining a business deals don’t enforce themselves.

Business organizations function as well as the people who operate and control them and most do not survive the first five years.   Most commonly, business disputes arise because of a failure to formalize operating or investment agreements.   Private business disputes happen frequently with people who used to be “best friends” or family members and, when there is no written agreement to govern the dispute or when the parties don’t adhere to their own agreements, the situation deteriorates quickly.

Another common business lawsuit is what we refer to as the “money guy/doer guy” dispute meaning one party has investment money (or customers) and the other knows the inner workings of the operation.   On paper, this is a marriage made in heaven – but underlying this arrangement are unforeseen issues such as glaring personality conflicts, unrealistic profitability projections, and short-sighted budgets.

Unfortunately, by far, the number one business dispute we handle relates to one of the parties becoming the bully of the business.   If you don’t like it, “there’s the door”.   They are usually the ones with “deeper pockets” and are already lawyered up to silence any opposition.  However, it could be the opposite, the bully has nothing but an overbearing personality but no skin in the game.   Bullies do not discriminate; anyone can become a victim and the collateral damage from those who suffer under a bullies’ thumb is immeasurable.   Business disputes usually happen with one party taking advantage a little at a time and the wrongful conduct becomes the normal operating procedure.   Victims of business disputes have a tendency to be pushed out of the business or their part of the deal over time – even when they are the ones that truly hold the business together.  There is never enough giving, and the business bully usually makes poor decisions based upon greed and a quest for more of everything.   If you are being bullied or taken advantage of in some way, you are not at fault and you are not alone.

There are a thousand reasons for business disputes to arise. For each reason, there are laws to protect a partner, shareholder or investor from being defrauded or by a breach of trust or a breach of contract.   Each situation is unique and requires careful analysis and application of different legal tools.

By the time you are looking for a lawyer to handle a business dispute, you are usually past the point of trying to amicably work things out and there is substantial money or property missing.   In this case, we believe it is time to stand up for yourself and we are here to support you.   We are heavy-handed in our pre-suit reconnaissance and believe information is the key to gaining the upper hand in any business dispute.   Our unorthodox approach to investigations is directed at making a meaningful attempt to resolve the case before it even gets filed and becomes a matter of public record.   In many instances, business bullies do not want to be exposed for fraud and become willing to resolve matters when presented with evidence of wrongdoing in a business dispute.