Purchasers in enterprise divorce litigation usually place great emphasis on issues that won’t matter a lot in the long term – like who the majority shareholders use as their lawyer.
Majority Shareholders’ Lawyer
Very often, once I file a shareholder oppression motion towards the majority shareholders and the firm, the lawyer who has represented the firm for years will wind up representing the defendants, and my minority shareholder purchasers usually object. If that lawyer has beforehand represented them or been given private data that may now be used towards them, the objection could make sense. However when the different facet makes use of the firm counsel, it could usually be factor.
The identification of the lawyer on the different facet might be vital, however usually not for the causes purchasers initially imagine. The reality is, there isn’t any larger ally in litigation than an adversary who understands the case, understands their very own shopper’s weaknesses, and – most significantly – has their shopper’s belief.
The worst sort of adversary is one who doesn’t even notice the hassle their shopper faces. In spite of everything, if they will’t acknowledge it, how can they convey it to the shopper? However when an lawyer is honest and cheap (sure, they do exist), and realizes what their shopper has completed, that lawyer can grow to be your most vital ally when it comes to settling the case.
No lawyer goes to admit that “you got us.” However when an lawyer realizes there was no justification for the compensation paid to the majority; or that maybe the 51% proprietor shouldn’t have used firm monies to construct a home in St. Croix (really occurred!); or that there actually was no justification to have the firm pay for remedies at an “anti-aging center” (once more, really occurred!); and so they have the ear of their very own shopper, you stand to save substantial authorized charges as a result of the enhanced chance of an early, profitable (to you) settlement will increase.
And no lawyer has a greater probability of getting their adversary’s ear in a enterprise divorce litigation than the long-standing, trusted advisor who has been representing the firm, and dealing intently with the majority shareholder, for years.
Purchasers in these circumstances ought to try to see actions by “the enemy” by means of the prism of “how does this affect me?” If it may make it easier to, who cares that they’re utilizing somebody they’re comfy with? Allow them to – after which, hopefully, reap the profit.