Business divorce can arise for a variety of reasons. Common causes include theft or fraud committed by partners, members, or shareholders, such as stealing business opportunities, self-dealing, falsifying financial records, providing goods or services to friends or family below cost, or misappropriating the business’s intellectual property.
These disputes can take many forms beyond outright fraud, including deadlock between owners over the direction of the business, unfair treatment of a minority partner or shareholder, or disagreement over a buyout following a partner’s exit. Owners facing these situations often have more options than they realize, including statutory and common law remedies that may apply even where a partnership or operating agreement appears to limit them. Our team represents business owners, partners, and shareholders on both sides of these disputes, advocating for our clients’ interests and helping them pursue practical, effective resolutions. We handle:
- Oppressed shareholder actions
- Breach of fiduciary duty claims
- LLC member and partnership disputes
- Corporate dissolution and buyout disputes
- Intellectual property disputes
- Partner freeze-outs and squeeze-outs
Commercial relationships don’t always go as planned. Businesses may find that a vendor, counterparty, or competitor has failed to live up to a contractual obligation, or has engaged in conduct that crosses the line from a legitimate business dispute into fraud, deceptive trade practices, or interference with a company’s business relationships. These disputes can involve significant sums of money and put ongoing business relationships at risk, making strategic and efficient resolution essential, whether through negotiation, arbitration, or litigation. Our attorneys represent businesses in disputes with vendors, counterparties, and competitors, working to enforce our clients’ contractual rights and protect their commercial interests. We handle:
- Breach of contract and breach of warranty claims
- Business torts
- GBL §§ 349-350
- Non-compete, non-solicitation, and nondisclosure agreement disputes
- UCC breaches
Not every business relationship is built on good faith. Individuals and companies sometimes misstate, conceal, or lie about a material fact to induce another party into a transaction. New York holds plaintiffs to a heightened burden of proof for intentional fraud claims, which must be shown by clear and convincing evidence; negligent misrepresentation claims, by contrast, require only a preponderance of the evidence. All fraud claims are also subject to strict statutory time limits. Because these cases often turn on what a party knew and intended, they can be difficult to prove and equally difficult to defend against without experienced counsel.
Our attorneys represent both plaintiffs seeking to recover losses caused by fraud or misrepresentation and defendants facing these allegations, in matters including:
- Fraudulent and negligent misrepresentation claims
- Fraudulent inducement
- Fraudulent concealment of material information
- Falsification of financial or business records
- Constructive fraud arising from relationships of trust and confidence
- Aiding and abetting fraud claims
Real estate disputes often intersect with bankruptcy and insolvency proceedings, whether a borrower, landlord, or business owner files for bankruptcy protection, or a debtor’s financial distress threatens a creditor’s ability to recover what it’s owed. Our team represents secured and unsecured lenders, real estate owners and developers, landlords, and other creditors in disputes that arise in federal bankruptcy courts, federal district courts, and state courts. We help clients protect their interests when a debtor’s insolvency puts real property, liens, or secured debt at risk, and we work with clients early to develop a practical strategy based on the realities of a debtor’s assets and finances. Matters we handle include:
- Lien priority disputes
- Fraudulent transfer and preference claims
- Automatic stay litigation
- Foreclosure-related bankruptcy issues
- Lender liability claims
- Workouts and restructuring involving real property
Insurance policies are often written broadly, and insurers frequently take a narrow view of what a policy actually covers when a significant claim arises. Policyholders can find themselves facing a denied or underpaid claim even where the loss appears to fall squarely within their coverage, whether the dispute involves property damage, business interruption losses, professional or directors’ and officers’ liability, cyber and data breach incidents, or other first- or third-party claims.
Our attorneys represent policyholders in disputes with their insurance carriers, working to enforce coverage and recover the benefits owed under the policy. We handle:
- Property damage and business interruption claims
- Directors’ and officers’ liability coverage disputes
- Cyber and data breach coverage disputes
- Professional liability and errors & omissions coverage
- Commercial crime and fidelity claims
- Coverage disputes involving construction, environmental, and toxic tort liability
Businesses invest significant time and resources in their confidential information, client relationships, and trained workforce. Restrictive covenants like non-competes, non-solicitation agreements, and confidentiality provisions are a key tool for protecting those investments. Disputes frequently arise when a departing employee joins a competitor, takes clients or confidential information with them, or otherwise violates the terms of an agreement they signed while employed. These matters often move quickly, since a company’s ability to prevent ongoing harm may depend on securing prompt injunctive relief.
Our attorneys represent both companies seeking to enforce restrictive covenants and individuals or businesses defending against these claims, in matters including:
- Non-compete and non-solicitation agreement disputes
- Trade secret misappropriation, including under the Defend Trade Secrets Act
- Employee raiding and departures of key personnel
- Confidentiality and nondisclosure agreement violations
- Applications for injunctive relief
- Counseling on restrictive covenants in employment and other agreements
