Family Business / Business Owner Disputes

Some ownership structures have been built up over time based on goodwill between people or groups of people. There is often a lack of records and documents which record who did what, and who should have done what. When these ownership structures fall down, the gloves come off. Accusations fly. Mud sticks, and it is often difficult to repair the trust and confidence that once saw everyone being highly successful.

When business owners or family members conducting a business fall into dispute, the early identification of issues, interests and positions can lead to an effective mediation or settlement, thereby avoiding a very costly and complicated litigation process which damages everyone, and the business.

ALG has resolved dozens of disputes between business owners and family members who each feel like the success of their jointly owned business was due more to the efforts of one group over another.

In our experience, retaining an expert dispute resolution lawyer very early on in the piece – whilst the murmurings of mistrust are still rising – can stop the escalation of an effective war for control over the business; it can stop barriers being put up that are later hard to take down; and it can stop one group from appointing an external administrator which can sometimes leave everyone a lot worse off.

Let ALG guide you through a restructure, or unwinding of your ownership structure, depending on what the future of the business requires. The types of disputes we have resolved include:

• Family disputes in a business whereby the relationship between owners has broken down;
• Family disputes in a business whereby the owners have taken individual paths, but the business has continued on but needs to be dissolved;
• Family disputes as to who has contributed what to the business, and therefore who should get what from the assets when it is dissolved;
• Unit holder disputes concerned with perceived unequal contributions to the value of the business;
• Investor versus manager disputes in which one person puts in some initial capital, and the other develops the concept into a thriving business, then the first seeks to reassert control;
• Family businesses in which one owner passes away and the remaining family members are arguing about what should happen or what they should receive.
• Disputes about promising ownership of a business without following through.