Squeeze Out By Merger
Continuing our series of posts about the strategy of resolving disputes among shareholders or partners, we come to a topic that ought to be obvious but is often something parties involved a dispute lose sight of. It’s the sort of thing that’ll make you say, “Well of course.” And that’s the simple fact that litigation is expensive. There are legal fees, expenses involved in discovery, the cost of retaining experts like valuators or forensic accountants. Litigation can also disrupt the operations of a business, hurting profits. If a case goes to trial, all these expenses increases even more.
Of course people don’t need to be told litigation is expensive. It’s fairly common sense. It’s also one of the reason many people would happily avoid litigation if they can. The aspect some may not consider is how the cost of litigation can affect strategy.
The most obvious scenario is the one in which one party has access to considerably greater financial resources than another. As the case carries on and costs mount, the finances of one party may feel the pressure while the other will not. The party with the deeper pockets might desire the case to drag out longer so the difference in finances can compound.
In the end, the finances of the parties involved is one more element of a strategy that needs to be considered when one is involved with litigation. It is also yet another element of the process that ought to encourage shareholders and partners finding themselves facing a dispute to retain the services of experienced counsel, those who will best understand how all the elements of a case can be put to work to secure a favorable outcome.
Horowitz Law Offices has represented numerous shareholders and partners, to litigate and resolve their complex and difficult disputes. You are welcome to contact us at (312) 787-5533 or firstname.lastname@example.org