Are you involved in a member or shareholder dispute over money in San Diego or Southern California? The Watkins Firm has worked to successfully resolve disputes between owners and business partners for more than 40 years. We have developed a unique approach to business disputes that is specifically designed to resolve these issues in a timely and cost-effective manner while protecting the goals and objectives of our clients.
We used to call our fellow business owners “partners”, but now the legal terms are “members” for an LLC and “shareholders” for corporations. It doesn’t matter what term you wish to apply, when one of your fellow members or shareholders is taking unwarranted distributions out of the company, or is commingling the assets of the company with their personal accounts you must take action to protect your interests.
The Watkins Firm has served the San Diego business community, medical practices and healthcare businesses for decades, and I can tell you that a large percentage of business litigation and disagreements come down to disputes over money between owners, shareholders or members.
It May Surprise You To Learn Your Corporate Documents Are an Important Key
Those who take the time to carefully review the operating agreement in an LLC or the shareholders’ agreement in a corporation at the time of business formation greatly reduce the likelihood of a disagreement over money down the road.
In many cases, resolving a dispute over money in your San Diego business can be resolved by updating corporate documents such as the operating agreement or shareholders agreement to clarify expectations, and how profit is to be calculated and disbursed. If you are concerned, trust your judgment and take action. It is our experience that left unchecked, these behaviors will not only affect present and future business operations, they will continue to worsen as time passes.
Resolving a Member or Shareholder Dispute Over Money
The Watkins Firm takes a unique approach to resolving a member or shareholder dispute over money. It may surprise you to learn the Watkins Firm is able to resolve the vast majority of these business disputes and lawsuits through effective, leveraged negotiation. Negotiation, based upon more than 40 years of real world successful experience, is the fastest and least expensive route to accomplish our client’s objectives while protecting their interests.
If negotiations are unsuccessful a lawsuit is often filed by one of the parties and the next step is to resolve the matter through a settlement conference with the Judge or through business mediation. Mediation is a confidential and private environment that keeps your personal, business and financial information out of the public record while focusing specifically on resolving the dispute at hand. The mediator should be an expert in not only the area of law associated with the dispute at hand but in helping parties to find common ground. The goal of mediation is a settlement agreement that resolves part or all of the dispute.
If the member or shareholder dispute over money is too substantial or complex to be resolved in mediation the next step in the process is usually binding arbitration. Arbitration is a lot like a streamlined trial. The arbitrator selected by the parties has the power to establish the process the parties will follow, marshal evidence, collect testimony and ultimately render an award or decision that resolves the matter once and for all. The decision of the arbitrator in these cases cannot be appealed except in very rare instances involving fraud and/or collusion.
The Watkins Firm Will Help to Resolve Your Member or Shareholder Dispute Over Money
If you are concerned about resolving a business dispute over money as a member, investor or shareholder in a San Diego or Southern California business we invite you to review our podcast Episode 11 – Resolving Business 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.
It is not unusual for small business people to act as if their business is “Me, Inc.” and imprudently use corporate funds for personal needs, and vice versa. Disagreements between stakeholders as to what is “profit” and how profits are to be disbursed are unfortunately very common. These disputes don’t have to become full out lawsuits, but it is important to take early and immediate action to put a stop to the associated behaviors and correct what has happened. Draw on the 40+ years of experience and proven successful track record of the Watkins Firm to protect your money and your interests.
