A recent decision by Justice Stephen A. Bucaria in a common-law dissolution case prompts a look at the rules governing use of company funds to pay legal fees in dissolution cases. Learn more in this week’s New York Business Divorce.
Continue Reading The Prohibition Against Using Company Funds for Legal Fees in Dissolution Proceedings

An unusual, two-state battle between 50-50 owners of a New York LLC led to a decision earlier this month by Justice Kornreich dismissing a dissolution petition and denying injunctive relief following a New Jersey judge’s order appointing a fifth Director to break a Board deadlock. This week’s New York Business Divorce has the story.
Continue Reading Court Dismisses Dissolution Petition Amidst Multi-Jurisdictional Battle for Control of LLC

The Appellate Division, Second Department, last week decided three appeals in the same business divorce case, addressing important issues concerning claims for LLC dissolution, equitable buyout, and use of company monies for legal fees defending dissolution proceedings. This week’s New York Business Divorce has the story.
Continue Reading One Parking Lot, Two Brothers, Three Decisions

New York Business Divorce this week inaugurates Winter Case Notes, offering synopses of three recent decisions by Supreme Court Justices Richard Platkin, Stephen Bucaria, and Cynthia Kern in cases involving the removal of an LLC manager and other issues of interest to business divorce professionals.
Continue Reading Winter Case Notes: LLC Manager Removal and Other Recent Decisions of Interest

This week’s New York Business Divorce highlights a recent decision by Justice Richard Platkin in a case involving a fractured family-owned business where the deaths of two shareholders before and during litigation triggered a consequential change in control.
Continue Reading Death of a Shareholder

Can majority members of an LLC withdraw a dissolution claim, over two years into the case, for the purpose of enforcing against a minority member the LLC agreement’s non-compete provision which, by its terms, lapses upon dissolution? Find out in this week’s New York Business Divorce.
Continue Reading Court Rebuffs Dissolution Withdrawal in Denying Enforcement of Non-Compete

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.
Continue Reading Court Denies Mandatory Injunctive Relief in Battle for Control of Family Business

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,
Continue Reading Court Holds Shareholder in Contempt for Using Company Funds to Pay Legal Fees

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.
Continue Reading Post-Buyout Election Interim Remedies: Bond, Injunction, or Both?

Over the last year or so Nassau County Commercial Division Justice Stephen Bucaria has issued a series of decisions in disputes among co-owners of close corporations and LLCs applying the ancient rule of partnership law prohibiting courts from adjudicating such disputes except when dissolution or a final accounting is sought. Learn more about this intriguing development in this week’s New York Business Divorce.
Continue Reading Squabbling Partners with Piecemeal Adjudications Need Not Apply