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Business Divorce – Shareholder & Partnership Disputes

Business partners, as with marriages, hardly ever plan ahead on how to sever their ties when the relationship sours.  Without a thought-out exit plan at the outset – when tensions are low and ambitions high – partners must instead figure out how to end their business relationship while at its lowest point.  That is an unenviable and stressful position that requires experienced help to avoid costly mistakes that diminish the value of your business interest, without sacrificing your fair share.

Diamond McCarthy’s business divorce attorneys will step in to resolve conflicts on behalf of minority shareholder, majority owner,  early investor, or any other equity stakeholder in a business.  Sometimes business conflicts can be resolved through thoughtful negotiations, other times it takes a lawsuit decided by a jury.  Most of the time, it falls somewhere in-between.  Diamond McCarthy’s attorneys, with years of experience dealing with exactly these types of issues, will work directly with you to determine the best approach to accomplish your specific goals.

Our firm represents the entire spectrum of business owners in nearly every industry.  In these business divorce and shareholder disputes we have represented individuals in the following areas:

  • – Parties in family limited partnership
  • – Real estate investment partnerships
  • – Oil and gas companies
  • – Software companies
  • – Private manufacturers
  • – Restaurant chains
  • – Liquor distributorships and others

We draw on the strength of our forensic team to investigate any oppressive or wrongful conduct.  Often times, the other side excludes you from even viewing the records that would uncover the wrongful conduct.  After all, a business conflict usually arises because the other side acted dishonestly and treated you unfairly.  Our team has to deal with these obstacles in nearly every case, and are not intimidated when the other side tries to stonewall the turnover of important business documents.

Our team’s holistic approach and unwavering commitment to uncover the wrongful acts at the root of a conflict has led to large jury verdicts, pre-trial judgments, and confidential settlements.  We have brought breach of fiduciary duty claims, derivative shareholder claims, fraud claims, breach of contract claims, and other causes of action based on the specific facts of your dispute.  We know the laws available to you, and will utilize the full range of available tools to get you what you deserve.

Representative Experience

Minority Shareholder Dispute

  • Acted on behalf of Plaintiff as co-counsel in a six-week trial that resulted in a jury finding awarding a $65 million dividend to the shareholders and more than $2 million in additional damages to the minority shareholder. The case was brought on behalf of a minority shareholder against the majority shareholder and the corporation for claims of shareholder oppression, fraud, breach of fiduciary duty, and breach of contract. The jury found Diamond McCarthy’s client entitled to a substantial dividend, back pay, and attorney’s fees.

Co-Owner Real Estate Shareholder Dispute

  • Represented majority shareholder who contended in lawsuit filed in state court in Fort Worth that he had been improperly deprived of the value of his ownership interest in real estate assets by his co-owners. Diamond McCarthy filed this lawsuit and secured a confidential settlement for the majority owner after first succeeding on appeal before the Fort Worth Court of Appeals to obtain a reversal of the trial court’s summary judgment order dismissing the case. Bakke v. Harvison, et al., Cause No. 352-244033-10.

Fertilizer Company Shareholder Dispute

  • Represented majority owner of fertilizer company in defense of claims by the minority owners who filed suit in the Texas Panhandle (Dallam County) to block the majority owner from expanding the company’s current board of directors. In the proceedings conducted by the trial court, Diamond McCarthy secured a denial of all injunctive relief that was requested by the minority owners, who then dismissed their case. Danny Poole, et al. v. Karen Poole, et al., Cause No. 11850.

Insurance Agency LP Shareholder Dispute

  • Represented limited partner in insurance agency in litigation with the General Partner related to the value of limited partner’s minority ownership interest in the business. After filing suit in Tarrant County, Diamond McCarthy was able to secure a confidential settlement and buyout for the limited partner of his minority ownership interest in the company. Grob v. Texas Wasatch Insurance Holdings Group, LLC, et al., Cause No. 352-249603-10.

Medical Device Distributor Shareholder Dispute

  • Represented majority owner of medical device distributor in litigation filed in Dallas state court by the company’s minority owner, who claimed that the majority owner had violated his fiduciary duties. Diamond McCarthy successfully negotiated a confidential, multi-party settlement of case, which secured dismissal of the lawsuit and resolved all claims. John Perry, et al. v. Scott E. Conard, et al., Cause No. CC-16-01117-B.

Restaurant Chain Shareholder Dispute

  • Obtained settlement and resolution of lawsuit filed in Dallas state court against a limited partner and founder of Dallas-based restaurant chain. On behalf of the minority owner, Diamond McCarthy negotiated the resolution of all claims alleged in the lawsuit and secured a confidential buyout of the minority owner’s interest in the business. M. Crowd Restaurant Group, et. al. v. Michael Rodriguez, et. al., Cause No. CC-09-00965-G.

Private Company Shareholder Dispute

  • Represented former majority owners of a privately Dallas company that sold bundled products in warranty packages. Diamond McCarthy defended against filed by NexBank SSB in state district court in Dallas. In the lawsuit, NexBank sought to recover more than $16 million following a loan default, and Diamond McCarthy obtained a dismissal of all claims via summary judgment. After the trial court granted summary judgment, the case settled on confidential terms before trial.

Family Business Shareholder Buyout

  • Secured multi-million pre-trial buyout of minority owner’s substantial interest in a family business involving multiple trusts. This buyout and settlement was achieved after Diamond McCarthy filed suit in Dallas state court, conducted substantial discovery, and secured a summary judgment ruling on the minority owner’s behalf holding that the General Partner and Trustee had breached his fiduciary duties. Pickens v. Pickens, et al., Cause No. 02-01105.

Real Estate – Tenants in Common

  • Represented a group of tenants in common (TICs) who owned a residential apartment complex in Grand Prairie, Texas. The TICs purchased the property as a “like-kind exchange” pursuant to Section 1031 of the Internal Revenue Code. After non-payment for several months, the TICs asserted claims against the Master Tenant challenging its management of the apartment complex. Diamond McCarthy filed an involuntary bankruptcy proceeding against the company to protect the TICs. After filing the bankruptcy action, the firm successfully negotiated a settlement and resolution of all claims for the TICs with the Master Tenant. In Re Sequoia Forum LeaseCo, LLC, Cause No. 11-33449-bjh.

Oil and Gas – Investor Representation

  • Represented investor group in oil and gas company, which had invested assets in what proved to be a Ponzi scheme. Diamond McCarthy filed an involuntary bankruptcy action against the company, which created a vehicle for bankruptcy trustee to file legal action against the company’s officers and directors. This lawsuit by the trustee helped the company secure a recovery under a D&O Policy that generated gross proceeds of $2 million for distribution to the bankruptcy creditors. In Re Shale Synergy, LLC, et al., Cause No. 10-31683-hdh.

Heating and Cooling Services – Shareholder Dispute

  • Represented limited partner in a heating and cooling service business who was fired and forced out of the company. Diamond McCarthy was co-counsel in this case for the limited partner and assisted him in achieving a confidential settlement and buyout of his minority ownership interest that avoided the need for trial. Shafer, et al. v. Moreno, Cause No. 141-246870-10.

For more information on our representative experience please reach out to our initial contacts or email michael.evian@diamondmccarthy.com.