Partnership & Shareholder Disputes in Cumberland County

Business Attorneys in Portland, Maine

Unfortunately, the business relationship between partners and shareholders can sometimes break down and get messy. This “business divorce” is the type of case we handle frequently in our office. If you want to get out of your partnership, have a dispute with another partner or are facing litigation against you related to your ownership of the business, please contact us.

Recently, we have achieved two arbitration awards on both sides of the spectrum of this problem. In one, Tim Zerillo represented a physician in the break-up of a medical practice. The opposing party and their lawyer demanded over one million dollars in extra compensation, claiming fraud, misrepresentation and a breach of fiduciary duty. We flat out refused to pay them anything, went to trial and prevailed. In fact, they owed us money when the case was done.

In another recent case, we represented a partner in a marijuana business. His business partner was taking money from the business and buying other assets with it. Some of those other assets included real estate. The other party refused to offer us anything, claiming that there were other sources of funds for the purchase. Tim Zerillo went to trial with an arbitrator and claimed that the opposing party should be removed from the business, that the remaining 60 percent of the business should be given to his client and that the real estate should be transferred to his client as well. He succeeded entirely. This very valuable business and real estate now belongs to our client.

Marijuana businesses require special care when they break up. Unless the businesses are carefully planned and operated, many of which are not, there may be sloppy bookkeeping and recordkeeping and a lot of cash. Recently, we filed suit in a marijuana business break-up to secure a safe. One partner changed the combination of the safe and kept it from the other partner. Once we secured the safe through litigation, we had a forensic accountant do an accounting of the proceeds and secure them elsewhere. It turned out there was about $500,000 in cash in that safe, which is not unusual for a successful marijuana business. With that money now secured, we are able to proceed with the litigation. Had we not secured those funds, one partner could easily have stolen them from the other.