Not every bad business decision creates legal liability. Boards of directors are routinely called upon to make difficult decisions in uncertain circumstances. Some decisions prove successful while others do not. The fact that a board decision produces an unfavorable result does not, by itself, mean that the directors breached their legal obligations. Corporate law generally […]
Shareholder Litigation
Five Warning Signs Your Board May Be Headed for Litigation
Board disputes rarely begin with a lawsuit. More often, they begin with subtle changes in how a company is governed by one of the following occurrences, among others: (1) the board excludes a member from important discussions, (2) a member is unable to obtain financial information, (3) one or two members make decisions without proper […]
Why Being Right Is Not Enough to Win a Business Lawsuit
One of the more difficult conversations we have with our business litigation clients is explaining that being right does not guarantee success. Most business owners approach litigation with an expectation that they should win. The business owner believes that they have every right to feel that way because, from their perspective, the facts are clear. […]
The Most Dangerous Words in a Business Dispute: “Trust Me”
Business disputes often begin long before anyone realizes there is a dispute. There will be no lawsuit, demand letter, or dramatic confrontation. Instead, the dispute will start with a simple conversation about why books are not ready and why a distribution is delayed. One of the partners will give vague answers about finances and take […]
Your Business Partner Just Hired a Lawyer—Should You Be Worried?
Over the years, we have seen many of our business owner clients experience the same reaction upon learning their business partner has hired a lawyer. There is panic and the immediate assumption that a lawsuit is coming. Further, the business owner begins replaying past conversations and wonders whether to hire a lawyer immediately, stop communicating, […]
The Most Expensive Email or Text You Will Ever Send During a Business Dispute
Business owners often fail to recognize that they are creating adverse evidence against themselves while writing it. It usually starts with frustration. Emotions run high when a business partner you once trusted stops being transparent, or a client refuses to pay, or a vendor breaches an agreement. Leading you to send an email or text […]
What it Means When Your Business Partner Says, “Let’s Keep the Lawyers Out of This”
When business disputes arise, you may hear: “Let’s keep the lawyers out of this.” This may sound like the other side seeks a collaborative resolution. At other times, the intent may be different. As a business litigator, I have seen situations where requests to “keep the lawyers out of it” were less about cooperation and […]
When a Business Dispute Becomes Personal: Why That’s Dangerous
In our practice, we have seen that some business disputes do not stay purely business for very long. When money, trust, ownership, or control is involved, emotions often begin to drive decisions. What started as a disagreement over operations or finances can quickly turn into resentment, retaliation, or personal attacks. That shift is where many […]