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301-409-5316
We are now accepting clients at our new Gaithersburg Office located at 9711 Washingtonian Blvd, Suite 550, Gaithersburg, MD 20878 (by appointment only)
Attorney ProfileGaithersburg, Maryland Business Dispute Lawyers
"I counted on Fox & Moghul to represent me through a lengthy and stressful business dispute, and I am very pleased with my choice. Faisal Moghul provided knowledgeable, steady, and respectful representation throughout the process and I always felt like I was in good hands. I highly recommend the firm."
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Attorneys for Business Divorce and Other Disputes in Gaithersburg
When business partners or other stakeholders encounter disputes, this can disrupt a company's operations, harm morale, and even threaten the existence of a business. These disagreements may be related to financial control, ownership rights, management authority, or conflicting visions for the company's future. When they are not addressed promptly, disputes can escalate into prolonged legal battles, and they may result in the dissolution of a business. An experienced business law attorney can help address and resolve these disputes while working to protect a client's rights.
At Fox & Moghul, our lawyers provide experienced legal counsel to help clients in Gaithersburg, Maryland resolve business conflicts efficiently and with minimal disruption. We have earned awards for our work in business law and our ability to resolve disputes effectively in and out of the courtroom. Attorney Faisal Moghul has been named a Fellow of the American Bar Foundation, and he has been recognized as a Super Lawyers Rising Star since 2016.
Our attorneys also make an effort to contribute to the education of others in the legal community through legal articles, workshops, and CLE seminars. We have published articles on topics such as "Direct vs Derivative Claims: Permitting Direct Shareholder Actions for Closely Held Corporations." With our depth of knowledge, clients can rest assured that they will receive the legal representation needed to address and resolve disputes effectively
Understanding Business Divorce and the Dissolution of Partnerships
A business divorce refers to the legal process of ending the relationship between business partners or co-owners who no longer wish to work together. A business divorce may involve highly contested issues and emotional conflict. The dissolution of a business partnership can be triggered by disputes over management decisions, financial disagreements, breaches of fiduciary duty, unequal contributions of labor or capital, or a breakdown in communication and trust.
Legal issues that may arise during a business divorce include:
- Division of Assets and Liabilities: Determining how to divide property, debts, and intellectual property equitably can be a source of dispute.
- Valuation of the Business: Determining the company's value is essential when handling buyouts or other dissolution scenarios. The parties may disagree on valuation methods or results.
- Enforcement of Partnership Agreements or Shareholder Agreements: Conflicts may emerge over the interpretation or enforcement of buy-sell clauses, non-compete provisions, or dissolution terms.
- Removal of Partners or Shareholders: In some cases, a partner may seek to remove another for misconduct, breach of duty, or failure to perform essential roles.
Our attorneys work with business owners to develop and execute exit strategies that will protect their interests while complying with the applicable laws. We work to preserve business continuity when possible, or we can oversee the winding down of the business entity when the dissolution of a business is unavoidable.
Excellence Always
Other Common Disputes Among Business Stakeholders
Beyond business divorces, various internal conflicts can arise among partners, shareholders, members of limited liability companies (LLCs), or other stakeholders. These disputes may be rooted in governance disagreements, unequal profit distributions, or claims of misconduct. Our lawyers can address disputes involving:
- Breach of Fiduciary Duty: A business's owners and officers have certain obligations, including a duty of loyalty to the business and each other and the requirement to act in good faith when conducting business operations. Claims may arise if a stakeholder engages in self-dealing, misappropriation of funds, or conflicts of interest.
- Minority Shareholder Oppression: Minority stakeholders may bring claims if majority owners act in a way that unfairly prejudices their rights, such as denying dividends, excluding them from management, or withholding financial information.
- Unauthorized Transactions: Disputes may occur when a partner or officer takes action on behalf of the business without the appropriate authority or approval processes.
- Deadlocks in Decision-Making: Equal ownership or voting shares can lead to impasses that may paralyze a business, particularly when governing documents do not specify clear tie-breaking mechanisms.
Direct and Derivative Lawsuits in Business Disputes
Legal disputes among business owners may be addressed through two primary types of lawsuits:
- Direct Suits: These may be filed by a stakeholder, such as a shareholder or partner, to enforce personal rights that have been violated. Examples include lawsuits over denied dividends, violations of shareholder agreements, or misrepresentation in the sale of ownership interests. A person who has suffered losses due to the actions of another partner or stakeholder may be able to recover damages or receive equitable relief.
- Derivative Suits: These may be brought on behalf of the business entity itself by an owner or shareholder. They may address actions by a director, officer, or controlling stakeholder who has harmed the company. These cases may seek to recover damages or enforce rights owed to the business.
Options for Resolving Business Disputes
Our attorneys will evaluate each situation to determine the most effective path to resolution based on the facts, the parties' goals, and other factors. The methods that may be used during business disputes include:
- Settlement Negotiations: Direct negotiations are often the preferred approach for resolving disputes when the parties have ongoing business relationships or shared interests. Our lawyers will work to negotiate settlements that protect the interests of our client while minimizing costs and disruption to a business's operations whenever possible.
- Mediation: The parties may work with a neutral, third-party mediator to address the issues involved in a dispute and find mutually agreeable solutions. Mediation is often faster and more cost-effective than litigation, and it may help to preserve business relationships.
- Arbitration: In cases where a binding resolution is needed, arbitration may provide a private and streamlined alternative to litigation. Many business agreements include arbitration clauses that will detail the procedures that will be followed when working to resolve disputes.
- Litigation: When other dispute resolution methods may not be effective, or when negotiations have broken down, the matter may need to be resolved through litigation in court. Our attorneys can pursue or defend business claims. With our experience representing clients in trials, we understand the strategies that may be used to achieve successful outcomes.
Contact Our Gaithersburg, MD Business Divorce Lawyers
Whether you are facing a business divorce, a conflict among shareholders, or the threat of litigation, Fox & Moghul can provide the legal counsel and representation needed to protect your rights and resolve conflicts effectively. Contact our Gaithersburg business divorce attorneys at 301-409-5316 to schedule a consultation and get the legal help you need as you address business disputes.
