Tag: resolving business disputes

What started with such promise has now reached rock bottom.

Andrew Marsden

Unfortunately, this is a familiar tale, and it’s often a deeply distressing and challenging time for all involved.

Inevitably it will impact upon your business and its clients and customers and can have a devastating impact on staff and their moral.

When the trust is gone, and an acrimonious atmosphere pervades, it’s hard to keep emotions contained.

Reconciliation may not be easy (you might not even consider it a possibility), but the longer disputes are left unresolved the more likely it is that your staff will notice that something’s not right. Indeed, friction might be so evident that your clients and customers soon start to notice too.

No matter the cause, disputes are never good for business and it’s important you try and resolve yours as quickly, amicably and as cost-effectively as possible.

The first thing you should consider doing, before anything else, is getting some legal advice from someone who understands the litigation and other dispute resolution processes available and can provide support and guidance on the best way to achieve resolution. 

‘Commercial divorce’ can be complex, so it’s important you have someone helping you who is a specialist in the field with experience in such matters and knowledge of the different routes to resolution that are available to you. Having the right legal support in place from the start can make all the difference to the outcome you achieve.

The good news is it is now possible to engage a specialist barrister directly and without the need to have to pay for a solicitor as well. Engage an experienced and specialist barrister in this way and you may well find that the process can become surprisingly fast and cost-effective. You’ll also benefit from the continuity of having a barrister at hand to advise throughout the litigation and dispute resolution process.

Once you have engaged a barrister, they will be able to discuss your options going forward with you and check what provisions you already have in place, whether in the form of a shareholders’ agreement or articles of association. These constitutional documents should generally include dispute resolution mechanisms that can make the process much more straightforward. If you don’t already have any such provisions in place, your barrister can also help you with this.

Where reconciliation isn’t possible, and you decide to part ways, your barrister can assist in opening the lines of communication between all parties so that you can move forward towards resolution.

Will you need to go to court?

This is one of the most common questions I get asked by clients who have found themselves in the midst of a dispute.

As a specialist barrister with more than thirty years of experience dealing with shareholder and partnership disputes, my approach is always to try and achieve commercial resolution on the best possible terms, at the lowest possible cost, and, if at all possible, without having to go to court.

For the majority of cases, this means that the expense of litigation can be avoided. In fact, very often, resolution can be achieved in the early stages, sometimes through mediation, and even if the dispute is bitter and acrimonious.

If you find yourself in the midst of a shareholder or partnership dispute and would like some help and advice on the best options for moving forward to resolution, please do get in touch with me. An initial thirty-minute chat is completely free, and I’d be very happy to give you some guidance as to the next best steps to take.

Do you trust your business partner?

Andrew Marsden

If there’s one thing that sits at the centre of your business relationship it’s trust.

Whether you’ve just started a new venture with a friend or colleague or have been in business for years, trust will be at the core of your relationship; it is very much the glue that brings and holds that relationship and the business together.

So, if trust in a business relationship suddenly disappears or gradually breaks down, the impact can be far-reaching. For most, it will be both demoralising and upsetting and for many, it can be really devastating; especially when your business and its finances are compromised as a result.

Consider potential fallouts before a dispute arises

Before you face such a situation, there are things you can and should do to make life easier if the worst comes to the worst. Preparing for any future dispute does not represent a lack of confidence; is not the same as believing that your relationship will not last. Planning for any possible eventuality is prudent. No matter how long you have known your partner and how strong your business relationship is, disputes can and do arise sadly all too often. When they do, you want to be sure you have a strong and sensible shareholders’ agreement in place. A carefully prepared shareholders’  agreement should not only protect you from the consequences of a fallout but also provide the practical means for achieving resolution of any future disagreements or disputes.

Record your understanding and expectations in a written shareholders’ agreement

The best way to avoid disagreements over who is responsible for what or how your business should be conducted is to clearly set out right from the start what you have agreed, what are all parties’ expectations and the resolution processes to be adopted if differences of opinion or dispute should arise. Don’t just agree on these matters verbally but record them in clear written form and in a legally binding document so that everyone concerned knows the position from the outset and everyone has a written record that they can refer to when the need arises. A shareholders’ agreement is not a legal requirement but one prepared by an expert with real experience in this field will certainly make things much simpler, clearer and more straightforward if you should face disagreement or dispute in due course. Indeed, an effective shareholders’ agreement should provide the framework for resolution. It is relatively inexpensive and can save you a lot of money further down the line.

Consider mediation

If you already find yourself in dispute with your fellow director or shareholder then don’t immediately turn to litigation. Although when in the midst of a dispute it can be hard to see a way out, the chances are your dispute can be resolved without having to go to court. Mediation is a really effective way of achieving dispute resolution and, again, is best conducted by an experienced and trained professional.

Seek legal advice as early as possible

I offer an initial FREE thirty-minute consultation, so you don’t have to wait until you are in the midst of a dispute to seek legal advice; in fact, the best way to protect yourself and your business from any fallout is to speak with an experienced and specialist legal professional in advance of any dispute arising or, if one has already arisen, at as early a stage as possible. 

Indeed, while it may be the last thing on your mind when embarking on a new business venture, planning for the worst early on will always put you in a better position further down the line. It may even help to strengthen and cement your business relationships from the outset.

Issues arising from a lack of trust can be challenging to overcome but rest assured there are steps you can and should take in order to prevent damaging repercussions from any such fallout, to protect your interests and to put yourself in a strong position from which to begin negotiating terms of resolution.

Why resolve your partnership dispute with a specialist and experienced barrister

Andrew Marsden

When things go wrong between the partners or directors of a business, the red mist can descend and it’s the impossible to make rational decisions that will benefit any of those involved.

Getting expert specialist legal guidance is always the first step and below I explain in more detail how this might work for you.

Explaining the dispute resolution process in a nutshell

For the majority, taking the first steps to dispute resolution can be the hardest part of the process. I have spent many years working with clients navigating difficult shareholder or partnership disputes and I know that, all too often, those involved delay taking or turn to the wrong people for advice and live to regret it.

Dispute resolution and the legal process can be confusing. It may well be the first time you have faced something of this sort. To help I have prepared an “infographic” which seeks to explain what’s involved. You can get a copy here.

Instructing a barrister directly

You might also be surprised to know that you can engage a barrister directly instead of going through a solicitor. What does this mean for you? Well, it can streamline process, gives you immediate access to specialist expert advice and will often save you substantial costs!

What you can expect from Andrew Marsden

You may not be familiar with working with a barrister – it may even seem intimidating. That is why I have also prepared an outline of exactly what you can expect when working with me. You can obtain a copy here.

Establishing an effective working relationship

Every client I work with and the situation that they face is unique. But, what they all want is a practical and commercial solution that works for them. A collaborative working relationship is essential to achieving this. It is very much a two-way process. The service I provide must work for you. To achieve this I welcome open dialogue, regular review and feedback. When you engage a barrister to resolve your shareholder or partnership dispute it’s essential that you establish a good working relationship with clear lines of communication from the outset.

Cost savings and other benefits in going directly to a barrister

How much will it cost? Here complete transparency is key. There is no excuse for unexpected fees or hidden costs. It is imperative to be clear, open and straightforward. I agree all fees in advance so that there are no surprise charges and I bill regularly so you know where you are. Indeed, if your lawyer is unclear about the costs involved this should be a “red flag”.

Unknown to many, it is very often cheaper to engage a barrister directly rather than going through a solicitor. Solicitor’s firms generally face large overheads and those inevitably get passed down to you the client.

There are also other savings to consider. Going directly to a barrister can avoid significant delays. It reduces the chain of communication. Fundamentally, if you have a strong position you will know this quickly and can act accordingly. On the other hand, if your position is weak you can save yourself a great deal of time, trouble and money.

Engaging a specialist barrister from the very outset not only provides you with direct access to specialist advice but also ensures you avoid steps that might compromise the strength of your position further down the line. I will provide you with a clear “road map to resolution” on the best commercial terms possible.

Free 30 minute consultation

So how do you start the process to resolution? I offer a free 30 minute phone consultation. You will probably have a host of questions and I should be able to answer many of them for you immediately. So, if you’re facing a breakdown in your business relations, if your embroiled in a shareholder or partnership dispute or if your fellow directors/shareholders or partners are behaving in an unfair or prejudicial way please get in touch – an initial conversation won’t cost you anything so you’ve nothing to lose!

Resolving business disputes – the legal process in a nutshell

Andrew Marsden

Business relationships are seldom plain sailing but what do you do when those cracks start to deepen? Maybe your business partner isn’t being completely transparent with the finances of the company. Perhaps they’re not pulling their weight in the same way that you are. Or it could be they’ve been holding meetings and making important decisions about the company without involving you.  How do you resolve business disputes like these?

Sound familiar?

If so, you’re not alone. It can be hard to confront but if these issues aren’t addressed quickly and effectively, disputes can arise which can ruin the business you have worked so hard to build. Don’t bury your head in the sand and ignore them. The longer they are left the more they will escalate, respective positions will become entrenched and resolution will be more difficult.

Resolving such disputes requires careful and tactful employment of all the tools available including negotiation, mediation and, if necessary, litigation. Section 994 of the Companies Act 2006 provides a mechanism for obtaining relief from any unfairly prejudicial conduct of the affairs of a company, but entering into the process blind is never a good idea. The greater your understanding, the more confident and in control you will feel at each stage.

For many, the legal domain can be an intimidating one but it really doesn’t have to be

Engage with a barrister that understands you and your business, and can communicate with you effectively, and you might just find it is easier to navigate than you first thought. Your ideal outcome might feel that bit less elusive too.

I have produced the below infographic to help explain the route taken to shareholder/director and partnership dispute resolution in a nutshell, and to give a good indication of the different stages and the kind of timeline this process can involve.

Pre-litigation

In many ways, perhaps the most critical stage; now is the best chance of resolving matters. Costs are at their minimum and so present less of an additional hurdle. Relations, though perhaps already poor, are unlikely to improve if proceedings have to be issued.

Issue of proceedings

Proceedings are begun by the issuing of a claim at court. This sets the litigation process off and running.

Statements of case

Next comes an exchange of written summaries of each side’s position to ensure that each side knows precisely what the other is saying.

Disclosure of documentary evidence

Each side is then required to provide the other with all the relevant documents that they have; not just those that might help their case. These include both written and electronic documents such as emails, text messages and social media postings. This stage can be crucial. It is often the first time each side sees the full extent of all relevant documents and because of this, cases often settle soon after disclosure.

Exchange of witness evidence

An exchange of statements from all persons that are due to give evidence follows. Alongside the relevant documents, evidence to be given by witnesses is crucial to the outcome. This what you will be relying on to establish your case and, if it gets that far, what the judge will base his decision on. Investment in careful preparation of witness statements from an early stage is money very well spent.

Exchange of expert evidence

Often expert evidence is required. In shareholder/director or partnership disputes this is most usually from accountants or valuers. Often a single, suitably qualified expert will need to be agreed upon and appointed by both parties.

Trial

Once all the evidence has been gathered and exchanged, the case will be ready for a trial if a settlement hasn’t already been reached. It is then that a judge will decide all issues and make his order resolving the dispute.

Timescales

Legal proceedings can take time. More often than not this is the element that people underestimate. It can take as long as 2 years before a case will even get to trial so be prepared for the long-haul.

Settlement of Disputes

It may be that you don’t need to go to Court at all. Remember that settlement can occur at any time during this process and in most cases disputes do not need to go to trial. Of course, it is better for all concerned if the dispute can be resolved by agreement at the earliest stage, with the minimum of cost and even, ideally, amicably.

First steps to resolving disputes – engaging a barrister

You should always seek expert, specialist advice and at as early a stage as possible. It may well prove key to the outcome of your case.

It may surprise you to know that you can now go direct to a barrister for advice, rather than having to go through a solicitor. Dealing direct with a barrister can often work out cheaper than going through a solicitor’s firm with large overheads. And what’s even more surprising is that it’s possible to have an initial discussion directly with a barrister without ever spending a penny.

It’s essential that you can trust the person that is advising you. Your business is no doubt important to you and therefore any dispute relating to it needs to be handled with due care and diligence. You need to understand the process and to have complete trust and faith in the way it is going to be handled on your behalf. It’s also important you don’t feel forced into a legal situation you would rather not enter into, or encouraged to take a legal route that doesn’t have your best interests at heart.

If you are experiencing a fallout with a business partner, or are looking for a way to resolve shareholder disputes please do get in touch. An initial conversation won’t cost you anything but will provide reassurance as to how to achieve the most favourable outcome for you. To find out more feel free to call me on 07718 883094 or email me at andrew.marsden@commercialchambers.org and I will happily talk you through the next best steps to take.