The intensely personal dynamic of a family business divorce can lead to a multitude of applications to the court for interim relief in an effort to gain the higher ground financially and psychologically. This week’s New York Business Divorce highlights a case in which Justice Emily Pines addressed dueling motions by step-siblings for interim, mandatory injunctions in a battle for control of their late father’s auto dealerships.
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2015
Not Your Father’s Derivative Action
By Peter A. Mahler on
This week’s New York Business Divorce travels upstate, to Buffalo, where a most interesting dispute between 50/50 members of a realty company has played out in litigation before Justice Timothy Walker, focusing on the rights of the non-managing member to bring a derivative summary eviction proceeding against the LLC’s sole tenant. …
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Court Holds Shareholder in Contempt for Using Company Funds to Pay Legal Fees
By Peter A. Mahler on
Posted in Attorney's Fees, Interim Remedies
Controlling shareholders who oppose corporate dissolution proceedings may be tempted to use company funds to pay their legal fees. This week’s New York Business Divorce features a decision by Justice Orin Kitzes holding in contempt of court a majority shareholder who did just that, …
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LLC Formalities that Matter: Guest Post by Professor Daniel Kleinberger
By Peter A. Mahler on
Posted in LLCs
This week’s New York Business Divorce proudly features a guest post entitled “LLC Formalities that Matter” by Daniel S. Kleinberger, Emeritus Professor of Law at William Mitchell College of Law and leading authority on unincorporated business entities. Don’t miss it!
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Appellate Court Upholds 0% Marketability Discount in LLC Fair Value Case
By Peter A. Mahler on
Posted in Accountants/Experts, Buyout, Family-Owned Businesses, LLCs, Valuation, Valuation Discounts
A Brooklyn appellate panel last week provided more fodder for the DLOM debate that’s been in the legal news of late, upholding a 0% DLOM in a fair value appraisal of a membership interest in a real estate holding company. It’s featured in this week’s New York Business Divorce.
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Decision in Dissenting Limited Partner Case Directs Fair Value Hearing, Grants Discovery
By Peter A. Mahler on
In the 25 or so years since New York adopted its Revised Uniform Limited Partnership Act, last month’s trial court decision in Levine v. Seven Pines Associates, L.P. may be the first to address issues attendant to a post-merger, dissenting limited partner appraisal proceeding. It’s featured in this week’s New York Business Divorce.
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Round-Up of Recent Business Divorce Cases From Across the Country
By Peter A. Mahler on
Take a trip across the country with this week’s New York Business Divorce, as it examines five appellate decisions last year by courts outside New York in business divorce cases. …
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Post-Buyout Election Interim Remedies: Bond, Injunction, or Both?
By Peter A. Mahler on
Posted in Buyout, Interim Remedies
Justice Richard Platkin’s decision last month in O’Connor v. Coccadotts, Inc., denying a dissolution petitioner’s preliminary injunction motion after the respondent elected to purchase the petitioner’s shares, focuses attention on the interim remedies available to ensure that the eventual fair-value award will be paid. Learn more in this week’s New York Business Divorce. …
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Take the 50% Shareholder/Dissolution Pop Quiz!
By Peter A. Mahler on
Think you know the rules governing a 50% shareholder’s standing to seek statutory and common-law judicial dissolution of a closely held corporation? Test yourself with a pop quiz in this week’s New York Business Divorce.
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“Jerk Insurance” Takes on New Meaning in Buyout Dispute
By Peter A. Mahler on
A recent federal court decision in a high-stakes case resolved a dispute over the interpretation and application of what’s commonly called a “jerk insurance” provision in a shareholder buyout agreement. Learn more in this week’s New York Business Divorce.
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