Many business divorce practitioners are familiar with a phenomenon one might call “petitioner’s remorse” – an often abrupt abandonment of one’s desire to dissolve a closely-held business entity when the opposing party unexpectedly declines to oppose or consents to dissolution. The dissolution petitioner’s rationale in bringing the claim may have been an expectation that the opposing party would fear the prospect of dissolution, oppose it mightily on the merits, and ultimately be forced into some sort of negotiated or compelled buyout. In that case, when the response is lack of opposition or consent to dissolve, the in terrorem effect and leverage is lost.
A recent decision from a Rochester-based appeals courts, Yehle v Rich, ___ AD3d ___, 2020 NY Slip Op 06631 [4th Dept Nov. 13, 2020], involved an egregious case of petitioner’s remorse, one in which the petitioner sued for dissolution, stipulated with the respondent to much of the relief sought in the petition, and then litigated for years in an attempt to undo the stipulated order of dissolution. Continue Reading An Extreme Case of Petitioner’s Remorse