Are you searching for a San Diego law firm with extensive experience in resolving disputes with a member or shareholder of your company?  Business litigation in San Diego can revolve around many things including breach of contract, disagreements between a company and a supplier, or employment disputes, but most often involves member or shareholder disputes.

Member or Shareholder Disputes are About the Money

Usually, disputes with a member or shareholder of your company are focused upon money, control of the business, or failure of a member or shareholder to live up to their expectations.  Money is obviously a primary source of business litigation, and the ways in which a member or shareholder is using or misappropriating business funds or assets can quickly generate legal issues that distract the company.

Commingling, using corporate credit cards, funds or assets for personal debts (and vice versa) is a primary business litigation issue.  There are often questions about member or shareholder distributions, how profit is being calculated and what will be considered a valid business expense.  Games are often played between ownership interests regarding control and the direction of the company, and in some cases it is important for a minority shareholder or member of an LLC to initiate a lawsuit over serious concerns of the company’s direction and present management skills and strategies.

The Expense of Resolving Disputes with a Member or Shareholder of Your Company

Business litigation is expensive, time consuming, emotionally taxing and, perhaps most importantly, distracts the owners attention away from the operational and best practices of running the company on a day-to-day basis.  Resolving these disputes, and any resulting business litigation is one of the highest priorities for any San Diego LLC or corporation.

The Watkins Firm has more than four decades of experience resolving business and contract disputes.  We take a unique approach to disputes which is specifically designed to resolve disputes and potential litigation in a cost-effective and timely manner.  It may surprise you to learn we are able to resolve the vast amount of disputes with a member or shareholder of your company through effective, leveraged negotiation.  This is the fastest and least expensive way to manage these cases and protect our clients interests and objectives.

Pro-Tip: “What can we do to help protect our clients contract in their position as members or shareholders? It’s most often about the money.We like to say, ‘if it’s off a penny, it’s off a million.’ So we look at the financial disclosures you’ve given, and if they don’t add up or doesn’t seem straightforward, we suggest you demand for documentation. And if they don’t give it, that’s sort of like, them pleading the fifth, and you know something’s wrong when they’re not willing to give their investors, their owners full access, full transparency into what’s going on with the company.

So that sense that you have that something’s just not right. That should also be a sense that maybe you should get some help. And you should do it right away. When shareholder fraud or shareholder breach happens, it’s easy for a purpose. That is an opportunity for management. And it’s usually happening now, and it probably involves a lot of money. They usually won’t do it unless it’s worth something.

Its also a timing thing. If you don’t have a shareholder agreement, or you have a weak shareholder agreement and management has broad discretion to do a lot of things, and they’re getting ready to do some questionable things, to make a big profit. And you come along and say, wait a minute, I think something’s wrong here. And you pose an objection. Well, before you file a lawsuit, the opportunity that management has (to come to their senses) is still there. So if you are the squeaky wheel right away, before they go forward with whatever they’re doing, then you may profit from that. But if you’re not, then it’ll just happen. And you’ll, instead of sharing in the profits, you’ll be fighting to claim you had rights to get some money back.” – Dan Watkins, Founding Partner

We invite you to review our podcast Episode 14 – Shareholders’ Rights and Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. We will work with you to develop effective strategies to resolve the dispute or litigation while accomplishing your business goals.