Legal Question in Business Law in New Jersey

Re: Corporate Deadlock

A review of your agreement would be important to giving a good answer to your question. One important question is whether the context of the agreement includes resolving ownership issues within the category of "management disputes." I suspect that it does not and that an arbitrator would not consider ordering a division of the company within the arbitration powers. However, this is only a guess.

Whatever the forum, it is probably a business reality that speed is important. The longer you wait to resolve the issue, either through cooperation or not, the more damage will be done to all concerned. I suggest therefore that you find a qualified lawyer with whom you feel comfortable and the two of you select among your various options and get started. Your lawyer is a professional and certainly qualified to participate in deciding the best course of action for you. So, it is neither necessary nor desirable for you to decide whether to litigate, arbitrate, or cooperate before getting a lawyer involved.

My firm handles matters of this type, however it may be easier for you to work with a lawyer whose office is closer to you. (You did not give your Zip code. My firm is in Marlton.) If I can be of further help to you, call or email.

See also: http://info.corbettlaw.net/lawguru.htm

Re: Corporate Deadlock

Litigation and arbitration are expensive, and rarely do parties emerge from those processes satisfied. Whenever the resolution is left to a judge or arbitrator, the parties to a dispute lose control to fashion a remedy that makes good business sense. For these reasons, if your partner would agree, I suggest you consider mediation before resorting to arbitration.

Mediation is non-binding and confidential, so there is no risk of publicity or prejudice to a legal position. Through a good mediator, the parties have a chance to facilitate a structured resolution in a matter of days, not weeks or months. Most importantly, you will contain legal fees and control the outcome of the dispute. If you do not settle through mediation, arbitration or litigation remains available, and you will have learned more about the strength or weakness of your case in the process.

I would be pleased to discuss this matter with you further offline.

Re: Corporate Deadlock

I have not seen your agreement, but arbitration explores all avenues, including business partition (splittinbg the business or forcing a sale or forcing one side to buy out the other). In light of what you say about promptness, I suggest you implement the arbitration provisions quickly, if you cannot work your differences out between you. If the arbitration is not binding, you may have to go to Court to resolve this anyway. I should point out that while arbitration is usually quicker than Court, it may be more costly. I also suggest you discuss this with your co-owner, informing him that some split of the business is inevitable, telling him the costs could be high, and that the longer it takes, the less value will be left for the business. This may allow for better communication between you. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.

Re: Corporate Deadlock

First, you need to hire experienced counsel to advise you. Unfortunately, the business fights are referred to as a "business divorce." They are expensive and messy. The sooner you get a lawyer the better you and the company will be.

There are advantages to arbitration, but this matter may need to be addressed by a Temporary Restraining Order in court. Talk to your lawyer NOW.

I hope this helps!

Ron Cappuccio

http://www.BusinessEsq.com