Business Divorce for Closely Held Company Resolves Amicably and Litigation Free

Court:

Our client, a closely held company owned by three equal shareholders, reached an impasse in the management of the company, recognizing that the business could not go on under the current ownership structure. The owners effectively divorced, with two shareholders remaining and one departing the business. CDF represented the interests of the corporation, and worked hand-in-hand with outside business litigation counsel, who was representing the interests of the two remaining shareholders. Together, they negotiated an amicable business divorce, resolved threatened claims of breach of contract and wrongful termination of the departing shareholder, structured an agreeable mechanism for determining the value of the buy-out of the departing shareholder, and put the company in a position to move on to the next chapter of its existence.