Stradling

When relationships between co-owners of privately held businesses become contentious and a “business divorce” is eminent, it is imperative to retain experienced counsel in order to preserve and maintain custody and control of the business operations and the full value of your ownership interest. Stradling’s business divorce team has successfully and skillfully untangled clients from their complex business relationships with their former partners and co-owners for decades.

Our team is dedicated to serving individuals, families and organizations involved in business separations through strategic negotiation backed by formidable litigation prowess if necessary. Our experience in business divorce includes matters involving disagreements and dissention among co-owners of closely held business entities, shareholder disputes, limited liability company (LLC) membership disputes and partnership disputes, as well as resolution of business disputes among spouses, friends and/or family members with joint commercial interests, assets and investments.

We are veteran advisors and proven advocates who know what to do in these challenging situations – instincts developed from years of in the trenches litigation, tax, real estate and securities experience. Our lawyers are fluent in the details of law involving closely held corporations, partnerships and limited liability companies. We navigate clients through:

Structuring and documenting buy-outs, liquidations, and business reorganizations resulting from judicial dissolution proceedings of majority and minority owners
Dissenting shareholder proceedings
Derivative suits and books/records proceedings that span the real estate, construction, healthcare/physician, manufacturing, finance, wholesale/retail, auto dealership and service organization industries.

Our multi-faceted understanding of business valuation and in working productively with high-level business and real estate appraisers on buy-out negotiations and appraisal litigation has resulted in accelerated resolution both in and out of court.

We believe in mitigating the potential for and/or avoiding expensive litigation through early-on intervention and careful diplomacy that can result in favorable out-of-court settlements. However, we are always prepared to seek relief in court when negotiation does not result in our client’s objectives.

Arbitration Victory in a Business Divorce & Real Estate Matter

Secured Favorable Award in High-Stakes Real Estate Partnership Arbitration

Stradling Litigators Prevail In One Month Bench Trial and Related Arbitration In $9 Million Dispute

Shareholder Obtains $9 Million Partnership Dispute

Cramer Decker Principals Settle Dispute Arising from Sale of Subsidiary

Hedge Fund Shareholder Secures Arbitration Victory

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California Business Divorce: Understanding IP Ownership in the Context of Operating a California Business

Picture a renowned winery in the heart of Napa Valley that has built its reputation on a trademark that connoisseurs associate with exceptional quality. This trademark, a symbol of years of hard work and dedication, represents the essence of the brand's identity and market appeal. Now, imagine the founders, once united by a shared vision, are embroiled in an irreconcilable dispute. As they contemplate separate paths forward, a critical question arises: who retains the rights to the trademark? The answer is pivotal, with far-reaching implications for both the future of both the business and the partners.

California Business Divorce Blog: Your LLC Can Run, But It Probably Cannot Hide From California Jurisdiction

In some cases, owners of an LLC provide in their Operating Agreements that any disputes involving the LLC or arising out of the Operating Agreement, including a business divorce, must be litigated in a private arbitration without a jury. However, where there is no arbitration agreement between the parties to a lawsuit, those disputes must be decided in courts which have personal jurisdiction over the LLC and/or its managers and members.

California Business Divorce Blog: Destruction of LLC Records Will Likely Subject LLC Owners to Personal Liability in a Business Divorce Dispute

In a recently published opinion, Hacker v. Fabe, 92 Cal. App. 5^th1267 (2023), the California Court of Appeal found that an LLC owner’s destruction of the company’s records was a substantial factor that subjected him to personal liability for the debts owed to a departing member by the LLC.

Business Divorce