Resolving a commercial dispute without going to court
Author(s):Michael Pickering B.A., LL.B. (Hons.), LL.M.
Publish Date: May 15, 2008
Client B retained Michael Pickering from LAC Lawyers to resolve a bitter dispute involving his uncle and close family friends, all of whom were directors and shareholders of a trading corporation in the I.T. field in Melbourne.
Client B had been the CEO. Client B suffered burnout and decided to step down as CEO but to remain as a director and shareholder. The other directors contrived to remove Client B both as a director and shareholder from ASIC records. When challenged, the remaining directors and shareholders refused to provide compensation to Client B or to reimburse him, retained profits which Client B had kept in the company's current accounts as working capital.
The company's argument was the Client B had unlawfully stolen clients for his own use and benefit and had misused company confidential information.
The dispute had become extremely personal. Client B had been effectively ostracized from family gatherings. The dispute was starting to effect Client's B physical and mental health. Formal litigation was not an option.
Michael Pickering suggested and organized a private mediation with the other directors and with Client B. All parties were legally represented. As a result of the clash of personalities between Client B and his uncle, the mediation at first appeared to have little likelihood of success. Both sides appeared to have got themselves into entrenched positions.
Towards the end of the mediation, Michael suggested that a private meeting take place between Client B and the CEO of the company who was the most approachable director. At first, Client B's uncle insisted that the private meeting involve him. Michael Pickering had to persuade the uncle that this was not appropriate in such a way that the uncle would not lose face and become obstructive.
As a result of the private meeting, a settlement was reached in 30 minutes.
As a result of Michael Pickering's ability to understand the dynamics and mechanics of the mediation and of the participants, he was able to suggest this strategy which broke the stalemate. Client B received reasonable compensation without having to face the prospects of a public trial or without having worsened his relationship with his family in general and with his uncle in particular.
Contact us now for Fast, Accurate and Timely legal advice
Phone LAC Lawyers on NSW 1300 799 888 or VIC 1300 734 638 or send us an email
Back
|