Often small business owners, especially when working with family or friends, seek to resolve business disputes without having to bring litigation. Avoiding litigation may be of paramount importance. While it is not always feasible to resolve such disputes short of litigation, in certain circumstances, there are tools to be able to amicably resolve intra business disputes without filing litigation. Having…
The reasons an owner dispute is triggered are never the same. Having handled several member and shareholder litigations, none of the disputes started the same way or involved the exact same circumstances. There are, however, some common themes that oftentimes lead to a dispute between owners. Usurpation of corporate opportunities, shareholders/members standing on both sides of a transaction, and breaches…
Most businesses in Minnesota are considered “closely held”. As it relates to a corporation, that means having 35 or fewer shareholders. Shareholders are the individuals that hold stock in the corporation – they are the owners. Being a shareholder in a closely held corporation has both pluses and minuses, just as being a shareholder in a publicly traded company does. …
A frequently asked question for closely held corporation shareholders is whether the shareholders owe each other any fiduciary duties? The answer is yes. In a closely held corporation, defined as a corporation with 35 or fewer shareholders, shareholders owe a duty to deal openly, honestly and fairly with other shareholders. If you are a controlling shareholder in a closely held…
As a board-certified civil trial specialist, I have been fortunate enough to have been entrusted with handling my fair share of cases to conclusion at trial (both court and jury) and arbitration. This is rare nowadays. The vast majority of cases (95% plus) settle short of trial. Trials are risky and expensive. We have seen some high-profile trials recently in…
One of the most common questions I get asked is whether non-competes are enforceable in Minnesota. The answer, like most things in the law, is that it depends on the circumstances. Often times, newly hired employees are required to execute non-competes (also referred to as restrictive covenants) as a condition of commencing employment. The employer is generally focused on protecting…
For most closely-held business owners, their business constitutes all or a large part of their assets and retirement savings. These owners have been pouring blood, sweat, tears and their savings into keeping the business running. As such, ensuring that the business they worked hard to develop is either maintained in the manner the owner deems appropriate or sold to leverage…
That all depends. The type of business, tax consequences, liability protections, and goals all impact what type of entity will provide your business with the ability to meet your goals. It is important to take the time to discuss what your business will be doing, how it will be doing it, and what the goals of your business are with…
When an employment/independent contractor relationship ends, there are certain considerations on next steps for both the company and individual. We talked earlier about non-competes and the implications of the same. Another issue that often arises is what to do with the information an employee/independent contractor gains from the company. This information can constitute a “trade secret” and is provided extra…
Our clients range from international and highly successful businesses to small start-ups to individuals. We treat our clients the way we would want to be treated – that your case is the most important case pending, because it is for you. We do not advertise. Our business comes from referrals. Sometimes opposing counsel. Sometimes opposing parties. But most often, from…