E-Resources

703-652-5506

Rockville, MD Business Dispute Attorneys

"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."

More Reviews

Protect Your Investments Contact Our Team Today

NOTE: Fields with a * indicate a required field.
Name *
Practice Area
Email *
Phone *
Message *

DisclaimerThe use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

I have read and understand the Disclaimer and Privacy Policy.

Lawyers for Partnership Disputes and Business Divorce in Rockville, Maryland

Disputes between business partners, shareholders, or other stakeholders can be challenging to resolve. When these disputes arise, they can threaten not only the financial health of the company but also its long-term stability and reputation. At Fox & Moghul, our attorneys work with clients to resolve business partnership and shareholder disputes through negotiations or litigation, and if necessary, we can help clients proceed with a business divorce.

The team at Fox & Moghul understands that business partner disputes often involve deeply personal and emotional elements alongside legal and financial concerns. We are committed to helping clients identify practical solutions that will protect their interests while preserving the value of the business whenever possible. We have the experience needed to help our clients navigate these complex disputes successfully and achieve results that will protect their interests.

Our lawyers have decades of experience working with clients to address business law concerns and resolve disputes. Attorney Faisal Moghul has represented clients in a wide variety of cases, and he also provides education in business law through seminars and published articles. Some of his relevant publications include:

  • "Direct vs. Derivative Claims: Permitting Direct Shareholder Actions for Closely Held Corporations"
  • "LLC Operating Agreements – Top 10 Clauses You Must Have"
  • "Protecting LLC Assets: Understanding Charging Orders and Asset Protection Strategies"

Mr. Moghul has also received numerous awards and recognitions from legal organizations. He has been recognized as a Super Lawyers Rising Star since 2016, and he was named a Fellow of the American Bar Foundation (ABF). With his credentials and his experience successfully representing clients in litigation, he can help ensure that business disputes can be resolved effectively.

Common Types of Business Partnership and Shareholder Disputes

Conflicts between partners, shareholders, or stakeholders can take many forms. Some of the most common disputes we help our clients address include:

  • Disagreements About the Direction of a Business: Partners and shareholders may have conflicting visions for a company's future. These disputes may involve growth strategies, product development, investment decisions, or whether to sell the business.
  • Conflicts of Interest: A partner or shareholder may engage in activities that compete with the business, or they may place their personal interests above the company's success. Examples include steering clients to another company or entering into contracts that benefit an individual rather than the business.
  • Breach of Fiduciary Duty: Owners, directors, and officers owe duties of loyalty, care, and good faith to the company and its stakeholders. Allegations of self-dealing, mismanagement, or misuse of business assets may lead to disputes that may need to be resolved through litigation.
  • Misappropriation of Business Assets: When a partner or shareholder diverts company funds, misuses intellectual property, or otherwise takes assets for personal gain, legal action may be required to recover financial losses and prevent further harm.
  • Compensation and Profit Distribution Disputes: Stakeholders may disagree about salaries, dividends, or reinvestment of profits. These disputes may be difficult to resolve if there is no clear shareholder agreement or partnership contract.
  • Minority Shareholder Oppression: Minority shareholders may claim that majority owners are excluding them from decision-making, withholding dividends, or otherwise acting in a manner that treats them unfairly.

Each of these disputes has the potential to disrupt the operations of a business, which could lead to financial losses for all stakeholders. Our attorneys can help to ensure that these conflicts will be addressed effectively and that our clients' rights will be protected.

Excellence Always

Schedule a Consultation

Options for Resolving Stakeholder Disputes

In many cases, early intervention and negotiation can prevent a disagreement from escalating into a full-scale legal battle. At Fox & Moghul, we will consider the needs of each client, advising them of all available options that may be available, including:

  • Negotiated Agreements: Many disputes can be resolved through negotiation between the parties. This approach can preserve business relationships and minimize disruption to a business. Our attorneys can work to draft and negotiate settlement agreements. If necessary, we can help arrange buyouts or amend governance documents.
  • Mediation and Arbitration: Alternative dispute resolution methods can provide structured frameworks for resolving conflicts outside of court. These methods may offer privacy, efficiency, and cost savings compared to litigation.
  • Litigation: When negotiation fails or when a party's misconduct threatens the survival of a business, litigation may be necessary. Our attorneys can provide the representation needed to help our clients protect their rights and achieve their goals during litigation.
  • Business Divorce: In some cases, ending the business relationship is the most practical solution for resolving a dispute between partners. A business divorce may involve selling the company, dissolving the partnership, or structuring a buyout that allows the business to continue under new ownership. Our attorneys can help clients navigate the complex legal and financial considerations involved in dissolving a business relationship.

Direct Suits vs. Derivative Suits

One important distinction in partnership and shareholder disputes is whether the harm has been suffered by the business itself or by individual stakeholders. This distinction determines whether a direct suit or derivative suit is appropriate.

  • Direct Suits: A direct lawsuit may be filed by a partner or shareholder who has suffered a personal loss. Examples include denial of voting rights, failure to pay agreed-upon dividends, or breaches of a shareholder agreement. Direct suits allow an individual stakeholder to recover damages or equitable relief for their personal losses.
  • Derivative Suits: A derivative lawsuit may be filed by a shareholder or partner on behalf of the company. These suits can address harm to the business as a whole, such as misappropriation of funds, self-dealing by officers, or breach of fiduciary duty. Any recovery in a derivative suit belongs to the business, not the individual filing the case.

At Fox & Moghul, our attorneys will carefully evaluate the circumstances of each dispute to determine whether a direct or derivative claim—or both—may be necessary.

Challenges in Business Partner and Shareholder Litigation

Resolving disputes among business stakeholders is rarely a simple process. The challenges that arise in these cases may include:

  • Preserving Business Value: While litigation may be necessary, prolonged conflict can erode customer trust, employee morale, and the overall reputation of a business. Strategic handling of disputes is essential to protect the business and ensure that it can continue to operate successfully.
  • Balancing Personal and Professional Issues: Many disputes involve family-owned businesses or long-standing partnerships. In these cases, the personal relationships between stakeholders can complicate matters. Our attorneys can help clients address legal concerns that affect their businesses while considering their ongoing relationships and the personal impact of these matters.
  • Complex Governance Structures: Businesses with multiple owners, complex shareholder agreements, or layered management structures will require a careful legal analysis to interpret the rights and obligations of the parties. Our lawyers can help ensure that disputes will be resolved in a way that will allow for ongoing operations, or we can negotiate a business divorce that will allow for restructuring.
  • Confidentiality Concerns: Public litigation may expose sensitive business information. Alternative dispute resolution methods may be preferable to protect trade secrets and financial details. Our attorneys can provide guidance on the best ways to resolve disputes while protecting a business against future harm.

Contact Our Rockville Business Dispute Resolution Lawyers

At Fox & Moghul, we work to help clients in Rockville and throughout Maryland resolve business disputes effectively. We can assist with negotiations or litigation, and we can help ensure that the correct steps are followed during a business divorce. Contact our Rockville, MD business dispute litigation attorneys at 301-409-5316 to schedule a consultation.

Back to Top