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Company sues former managing partner

On Behalf of | Aug 19, 2019 | Business Litigation |

Most in Daytona Beach might assume that business litigation is limited to legal conflicts between two different companies. Yet oftentimes such cases can arise from internal strife. In many ways, internal employees can pose the greatest threat to business owners in that they know a company’ vital business information (their trade secrets and intellectual properties) and they often have the explicit trust of those owners. If and when such trust is violated, those with a stake in a business that has been compromised might justly want to seek legal action

That is exactly what is happening in a feud between a New York company and its former managing partner. In a lawsuit filed against the former partner, it is alleged that the man used the opportunity of the founder suffering a stroke to assume control of the company. Yet rather than continue with the business’ standard operations, the man instead manipulated the company’s resources to further his own interest. He started another company (which he operated from the same location) and began to play the two off of each other as competitors. Representatives of the original company claim that while doing this, he grossly mismanaged the business, even going so far as to fail to remit payroll taxes (which resulted in a federal tax lien). 

Instances such as this demonstrate both how easily problems can arise from within a company’s own ranks and how complex those problems can become. In such cases, it may difficult for executives and managers to adequately sort through issues on their own. Enlisting the assistance of an experienced attorney may increase one’s chances of success in such a matter.