WHAT WE DO
Shareholder and partnership disputes can devastate business operations, destroy valuable enterprises, and eliminate years of investment and hard work. These conflicts often involve complex legal issues combined with emotional dynamics that require experienced counsel who can navigate both the legal complexities and business realities.
At The Pettit Law Firm, we understand that ownership disputes are rarely just about money – they involve control, vision, and often personal relationships that have gone wrong. Our approach focuses on protecting our clients’ ownership rights while pursuing outcomes that maximize business value and minimize operational disruption.
Contact UsTypes of Disputes We Handle:
- Business divorce and buyout disputes
- Minority shareholder oppression claims
- Breach of operating agreement or partnership disputes
- Management and control conflicts
- Profit distribution and accounting disputes
- Derivative actions and corporate governance issues
- Buy-sell agreement enforcement and valuation disputes
- Fiduciary duty breaches by partners or shareholders
REPRESENTATIVE EXPERIENCES
Secured $2.122 million jury verdict and full ownership declaration in business divorce – Achieved complete victory for client in complex ownership dispute involving car wash and commercial property operations
Obtained $3.6 million judgment for fraud and breach of fiduciary duty – Successfully prosecuted case against CEO of national media company for misconduct harming business partners
Extensive experience in business divorce litigation throughout Texas involving various entity types and ownership structures
Minority Shareholder Protection: Minority shareholders and partners often face oppression by being excluded from management, denied access to information, or deprived of economic benefits. We pursue all available remedies including buyout rights, dissolution, and damages for oppressive conduct.
Business Divorce and Buyouts: When business relationships become irreparable, we handle complex business divorces involving valuation disputes, asset division, and operational separation. Business divorces can include both voluntary buyouts and court-ordered dissolution proceedings.
Fiduciary Duty Claims: Business owners owe fiduciary duties to each other and to the entity. We pursue claims for breach of fiduciary duty including self-dealing, usurpation of business opportunities, conflicts of interest, and mismanagement that damages the business or other owners.
Valuation and Buy-Sell Disputes: Business valuation is often contentious in ownership disputes. We work with qualified business appraisers and financial experts to establish fair value and enforce buy-sell agreements, addressing issues like discounts, control premiums, and valuation methods.
Derivative Actions: When corporate management breaches duties to the corporation, shareholders may bring derivative actions on behalf of the entity. We handle complex derivative litigation involving management misconduct, self-dealing, and corporate waste.
Operating Agreement Enforcement: Partnership agreements, operating agreements, and shareholder agreements govern business relationships. We interpret and enforce these agreements while addressing gaps, ambiguities, and changed circumstances that create disputes.
Emergency Relief: When ownership disputes threaten immediate business harm, we seek temporary restraining orders, temporary injunctions, and the appointment of receivers or interim managers to protect business operations and assets.
Complex Business Structures: We handle disputes involving various entity types including corporations, partnerships, LLCs, and joint ventures, understanding how different structures affect rights, remedies, and litigation strategies.
Multi-Party Disputes: Business ownership disputes often involve multiple parties with competing interests. Our experience in complex commercial litigation allows us to effectively manage multi-party scenarios and achieve comprehensive resolutions.
Our approach combines strategic advocacy for our clients’ ownership rights with practical business understanding, seeking outcomes that protect investments while preserving business value where possible.
FAQs
Oppression generally involves conduct by controlling owners that substantially defeats the minority’s reasonable expectations, such as exclusion from management, denial of information access, or deprivation of economic benefits without legitimate business purpose.
Business valuation typically involves analysis of assets, earnings, market comparisons, and future prospects. Disputes often arise over valuation methods, discounts for minority interests, and whether control premiums apply.
Buyout rights depend on your agreements, applicable law, and specific circumstances. Some situations provide statutory buyout rights, while others require proving oppression or other grounds for judicial relief.
Deadlocks can be resolved through various mechanisms including mediation, arbitration, buyouts, or judicial dissolution. The appropriate remedy depends on your agreements and the specific circumstances.
Timeline varies significantly based on case complexity, number of parties, discovery needs, and whether business valuation is disputed. Simple cases may resolve in months, while complex disputes can take years.
A derivative lawsuit is filed by shareholders on behalf of the corporation against directors or officers for breach of fiduciary duties. It requires showing the corporation was harmed and that demand on the board would be futile.
Often yes, through temporary management arrangements, interim agreements, or court-appointed managers. We work to protect business operations while resolving underlying ownership conflicts.
Potential damages include lost profits, decreased business value, buyout at fair value, and in some cases punitive damages. Specific remedies depend on the nature of the dispute and applicable agreements.
Mediation can be effective for business disputes, especially when ongoing relationships are important. However, having trial-ready counsel often leads to better mediated outcomes because other parties know we’re prepared to litigate if necessary.
Contact Us
Want to talk about your case?
Email jpettit@pettitfirm.com
Or contact us at:
The Pettit Law Firm
1900 Pearl, Suite 1740
Dallas, TX 75201
Phone: 214.329.0151
Fax: 214.329.4076