Legal Question in Business Law in Massachusetts
Small family business has dispute among brothers
We are small business consisting of 3 brothers and headed by our mother. One brother feels he should receive an ''executive paycheck'' much more than the others, as well as be in charge. He speaks down to his other brothers and will not do anything he feels is ''below'' him. This behavior has led to 2 verbal confrontations resulting in the ''egomaniac'' brother not to come to work for a few days each time. His mother called him a few days later the last instance and asked if he was planning on coming back. He stated, ''unless he received his executive paycheck and his brothers treated him as if he was the boss'' he would not be back. She said no. He stated that they should talk severence pay, and she replied what severence pay? He then said that he would be filing suit, because he was ''attacked on the job''. What rights does the company have and what rights does he have, especially when it pertains to a family and brotherly relationship?
2 Answers from Attorneys
Re: Small family business has dispute among brothers
Your brother does not seem to have any right to the compensation and role he is seeking. He is not entitled to severance unless he has a written agreement so stating. If he was "attacked" on the job, his remedy is workers compensation. As to your family relationship, it does not appear to be a concern of his, however there will be damage to that relationship if you cannot reach some amicable resolution. You should consult with a lawyer to assure yourself that your understanding of your business relationship is correctl
Re: Small family business has dispute among brothers
Apart from this becoming messy and expensive as such litigation does, based on the facts presented it would appear that your brother quit and has no rights to any compensation, unless there is some written employment agreement that provides for compensation.
The next question is "was he forced to resign". I can't speculate on the actual events that made him walk out, but based on your description there was no such situation presented. If he suffered physical injury, then he may have a workmens comp claim or a claim against the individual who injured him assuming physical injury. He would still have to prove damages.
There is of course the damage to the family as well. This type of thing is more common than one would think. I know first hand how difficult these things can be having grown up in a family business.
It is not the legal cost but the emotional cost that continues long after such matters are put into court.
Having said all that, you need to look at stock ownership and buy-sell agreements as well as employment agreements if any exist to properly assess your position.