Ooo I heard it through the grapevine Not much longer would you be mine Ooo I heard it through the grapevine And I’m just about to lose my mind. (Marvin Gaye’s I Heard It Through the Grapevine) (Written by Norman Whitfield and Barrett Strong) This is the fourth in the “Breaking Up is Hard to Do” nine-part series on exploring dispute resolution for business divorces. Self-dealing. Inequitable compensation. Exclusion from decision-making. Usurpation of business opportunities. Denial of access to books and records. Disagreements over future direction. Business failure. Fraud and mismanagement. These are some of the common accusations in business divorces, but each of these allegations boils down to one common catalyst for the dispute: betrayal. Whether real or perceived betrayal, these disputes are often emotionally charged and suffer from a cavernous trust deficit. So, how do we diffuse emotions, bridge the trust divide, and move toward resolution? In the context of arbitration, arbitrators use structure to mitigate these challenges. There is a formal construct setting guidelines, parameters, and hearing dates. The process culminates in a forum (final hearing) for each of the parties to be heard. In the context of mediation, the trust deficit looms large as the goal is for the parties to reach an agreement. Mediators have lots of tools in their toolbox to address this, including: Time: Allowing parties time to safely share their experience and process their emotions is critical to these mediations. Parties often need to be heard, validated, and supported before they can move beyond their pain to explore options for resolution. Common Ground: Parties locked in a dispute tend to focus only on their differences. As a result, they miss the common ground. Taking time to seek out, identify, and highlight areas of agreement may help rebuild some of the lost connection and trust. Connection: At the start of their venture, the co-owners shared some connection – a family connection, a friendship, a shared vision, something. In some business divorce mediations, once they have had a chance to process their negative emotions, parties become nostalgic about the connection they once had. Once remembered, this shared connection may help parties shift toward finding a path to resolution. Reciprocity: Deeply engrained in nearly every culture is the rule of reciprocity: those who give a benefit are entitled to get a benefit in return. Time and reciprocity need to be sequenced. The rule of reciprocity is most effective once each party has begun to process their emotions. The back and forth, and back and forth, and back and forth of mediation is reciprocity at work. Receptivity: To pivot from entrenched positions to exploring interests and options for resolution, parties need to become receptive. Receptivity is being open to hearing and considering different views, opinions, and options. Receptivity takes time – time to share, time to be validated, time for empathy, time to process, time to find common ground, and time to engage in reciprocity. Once all parties are receptive, meaningful progress can be made in finding a path to resolution. Disclaimer: “You’re So Vain, You Probably Think This Song is About You” (written and sung by Clary Simon). Please note that this series is drawn from over 30 years of experience as counsel or neutral in business separations, reconciliations, and divorces. Nothing in this series is based on any specific dispute in which I have been involved. In addition, nothing contained herein constitutes legal advice nor does it create a professional relationship. ADR Insights on Business Divorces - I Heard it Through the Grapevine (Part 4 of 9) The post ADR Insights on Business Divorces: I Heard It Through the Grapevine (Part 4 of 9) appeared first on Sylvia Mayer Law.
I’ve had choices, since the day that I was born There were voices that told me right from wrong If I had listened, I wouldn’t be here today Living and dying with the choices I made. (George Jones’ Choices) (Written by Billy Yates and Mike Curtis) This is the third in the “Breaking up is Hard to Do” nine-part series exploring dispute resolution for business divorces. Choices. Disagreements are inevitable. There are many choices available to resolve them. The first important choice is to include a dispute resolution clause in the governing documents. Having clearly defined procedures may alleviate some of the tension as the parties work toward a resolution. When choosing a dispute resolution clause, rather than using a boilerplate provision, business partners should think about their specific needs and concerns. Co-owners should consider different forms of dispute resolution including mediation, arbitration, and courthouse litigation. They should think about confidentiality, cost containment, time constraints, relationship preservation, formality, and industry factors. They should examine procedural issues including jurisdiction, venue, forum, governing law, and statutes of limitations. If relationship preservation is a primary driver, then early mediation may be the best place to start. However, provision should be made for next steps if efforts at consensual resolution are unsuccessful. If confidentiality is of great importance, then mediation and arbitration may be good choices because both may be conducted confidentially. If cost containment or time constraints are essential, then deadlines can be embedded in the dispute resolution clause governing mediation and arbitration. In addition, for arbitration, the clause can provide for a sole arbitrator and establish limits on discovery. If the dispute resolution clause includes mediation and/or arbitration, then it should also address whether it will be administered by a third party (i.e., AAA, CPR, AHLA, JAMS, etc.) or governed by the procedural rules of a third party even if non-administered. One word of caution. At inception, there is no way to predict the nature, breadth, or depth of disputes in the future. Make sure to build into the clause sufficient flexibility so that it will remain relevant regardless of how the future may play out. There are many dispute resolution clause drafting tools available for free, including through the American Arbitration Association and JAMS, which can be used to design a dispute resolution clause tailored to fit the situation. With so many choices, business partners should take the time to understand their options and explore their concerns, then customize a dispute resolution clause that fits their specific needs. Disclaimer: “You’re So Vain, You Probably Think This Song is About You” (written and sung by Clary Simon). Please note that this series is drawn from over 30 years of experience as counsel or neutral in business separations, reconciliations, and divorces. Nothing in this series is based on any specific dispute in which I have been involved. In addition, nothing contained herein constitutes legal advice nor does it create a professional relationship. ADR Insights on Business Divorces - Choices (Part 3 of 9) The post ADR Insights on Business Divorces: Choices (Part 3 of 9) appeared first on Sylvia Mayer Law.
Be careful when write checks to pay bills due to fraud! See the New York Times article at https://www.nytimes.com/2023/12/09/business/check-fraud.html?smid=nytcore-android-share Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
What is the means test in bankruptcy? Business Insider (see link below) has a very helpful article on the Means Test in personal Bankruptcy filings. https://www.businessinsider.com/personal-finance/what-is-bankruptcy-means-testIn our experience, having filed approximately 1,000 Bankruptcy Petitions for individuals and businesses, the Median Income and Means Test is especially important for higher income Debtors. Individuals with questions about the Median Income or Means Test should contact Jim Shenwick, EsqJim Shenwick, Esq 917 363 3391 [email protected] click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
Fraud Investigations into COVID-Era PPP and EIDL Loans Increasing. JD Supra (link below) has an article stating that fraud investigations into PPP and EIDL loans from the SBA are increasing. https://www.jdsupra.com/legalnews/fraud-investigations-into-covid-era-ppp-3571111/Based on telephone calls to our law offices, we believe that that statement is correct. Clients who are contacted by the Department of Justice regarding PPP or EIDL fraud should contact and retain experienced criminal counsel as soon as possible.We at Shenwick & Associates are only representing clients with Defaulted SBA loans. Jim Shenwick, Esq 917 363 3391 [email protected] Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!
You just slip out the back, Jack Make a new plan, Stan You don’t need to be coy, Roy Just get yourself free. (Paul Simon’s 50 Ways to Leave Your Lover) (Written by Paul Simon) This is the second in the “Breaking up is Hard to Do” nine-part series exploring dispute resolution for business divorces. Make a new plan. When starting a new business, business partners are in the honeymoon phase. Frequently, they have tunnel vision and are focused solely on building their business. While building the business is mission-critical, equally important is advance planning to minimize future disputes and disruptions. At inception, the co-owner relationship is at its peak and there is no history of bad experiences or pent-up negative emotions. While it may be hard to imagine a scenario where they disagree or face challenges, co-owners need to prepare on the front end for the disputes that may arise on the back end. In addition to considering future upside, new business partners should discuss goals, inflection points, worst-case scenarios, and potential pitfalls. Here is a non-exhaustive list of topics new business partners should explore: Ownership structure, Financial and performance goals, Short and long-term objectives, Exit strategy and options, Capital contributions and capital accounts, Compensation, Noncompete agreements, Fiduciary duties, Succession planning (both long-term and in the event of an emergency), Access to books and records, Audit rights, Checks and balances, Potential dissolution or liquidation, Buy-sell provisions (including triggers, mechanics, and valuation methods and procedures), Control features (including voting requirements and breaking deadlocks) General corporate governance, and Dispute resolution. The best method to resolve business disputes is to avoid them altogether through careful consideration and planning at the beginning. As Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” Instead of preparing to fail, at formation, co-owners should make a new plan for the future. Disclaimer: “You’re So Vain, You Probably Think This Song is About You” (written and sung by Clary Simon). Please note that this series is drawn from over 30 years of experience as counsel or neutral in business separations, reconciliations, and divorces. Nothing in this series is based on any specific dispute in which I have been involved. In addition, nothing contained herein constitutes legal advice nor does it create a professional relationship. ADR Insights on Business Divorces - Make a New Plan, Stan (Part 2 of 9) The post ADR Insights on Business Divorces: Make a New Plan, Stan (Part 2 of 9) appeared first on Sylvia Mayer Law.
They say that breaking up is hard to do. Now I know, I know that it is true. (Neil Sedaka’s Breaking Up is Hard to Do) (Written by Neil Sedaka and Howard Greenfield) Welcome to “Breaking up is Hard to Do.” This is the first in a nine-part series exploring dispute resolution for business divorces. Let’s start at the very beginning. What is a business divorce? Generally, a business divorce is when a situation arises between business partners leading to one or more seeking to break up. While some business divorces are amicable, many are not. When the co-owners cannot agree, then their dispute may end up in mediation, arbitration, or courthouse litigation. In this series, we will explore a myriad of issues related to resolving business divorces, including planning, emotions, valuation, potential reconciliation, and closure. Although breaking up is hard to do, careful advanced planning and thoughtful navigation of the process can help parties find a path to resolution of the disputes that arise in their business break-up. Disclaimer: “You’re So Vain, You Probably Think This Song is About You” (written and sung by Clary Simon). Please note that this series is drawn from over 30 years of experience as counsel or neutral in business separations, reconciliations, and divorces. Nothing in this series is based on any specific dispute in which I have been involved. In addition, nothing contained herein constitutes legal advice nor does it create a professional relationship. ADR Insights on Business Divorces - Breaking Up is Hard to Do (Part 1 of 9) The post ADR Insights on Business Divorces: Breaking Up is Hard to Do (Part 1 of 9) appeared first on Sylvia Mayer Law.
Mediation is a give and take. It requires listening and sharing. It requires understanding wants and needs. To illustrate, let’s consider Karen Kaufman Orloff’s “I Wanna Iguana.” In this story, young Alex’s friend Mikey is moving away and cannot take his pet iguana with him. Alex really, really, really wants to adopt his friend’s iguana. He just has to convince his mother. As the story unfolds, Alex and his mother exchange a series of letters. Alex explains in each letter why he should be allowed to have a pet iguana. His mom responds. Alex’s first letter reads: “Dear Mom, Did you know that iguanas are really quiet and they are cute too. I think they are much cuter than hamsters. Love, Your adorable son, Alex.” Mom responds: “Dear Alex, Tarantulas are quiet too, but I wouldn’t want one as a pet. By the way, that iguana of Mikey’s is uglier than Godzilla. Just thought I’d mention it. Love, Mom.” Their letters go back and forth as Alex tries various different arguments. These arguments range from, he’s so small you will never know he’s there, to which Mom responds that iguanas can grow to over 6 feet long so she will know, to the iguana can be the brother that I’ve always wanted, to which Mom responds that he already has a brother. Alex perseveres. But, more importantly, both Alex and Mom learn in the process. Through trial and error, they each begin to understand what is important to the other. In one letter, Mom reminds Alex what happened when he brought home the class fish. Alex responds with “Dear Mom, If I knew the fish was going to jump into the spaghetti sauce, I never would have taken the cover off the jar! Love, Your son who has learned his lesson. P.S. Iguanas don’t like spaghetti.” This letter marks a turning point because Mom responds by asking, if he were allowed to have the iguana on a trial basis, how would he care for it? Through more letters, Alex explains how he would feed and water the iguana, clean its cage, and use his allowance to pay for its food. Mom writes in her final letter, “Dear Alex, Look on your dresser. Love, Mom” And there, Alex finds the iguana. This story beautifully captures the give and take of a successful mediation. Alex and Mom each listened to the other. Each shared with the other. They each considered the wants and the needs of the other. And, ultimately, they reached an agreement. Listening. Sharing. Considering both your own wants and needs and the other’s wants and needs. These are important parts of finding your path to resolution. Author’s Note: As a mediator, I am a “forever student” always seeking new ways to help people find a path to resolution in mediation. As a parent, I have spent a gazillion hours reading books to my children. Oftentimes, these books teach me new ways to approach conflict resolution. In this case, Karen Kaufman Orloff’s “I Wanna Iguana” inspired this post. Disclaimer: Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. Mediator Insights - The Give and Take of Mediation The post Mediator Insights: The Give and Take of Mediation appeared first on Sylvia Mayer Law.
“Goodnight room, goodnight moon, goodnight cow jumping over the moon…” Does just reading or hearing those words make you feel more relaxed? That is the beauty of Margaret Wise Brown’s book “Goodnight Moon.” Her book has helped children fall asleep for decades and teaches us a valuable lesson for conflict resolution. Let’s explore this concept by looking more closely at the story. The story and imagery are simple. The book starts by painting a picture with words and images as a little bunny is getting ready for sleep. “In the great green room, there was a telephone and a red balloon and a picture of the cow jumping over the moon and there were three little bears sitting on chairs, and two little kittens, and a pair of mittens, and a little toy house, and a young mouse, and a comb and a brush, and a bowl full of mush, and a quiet old lady who was whispering ‘hush.’” Next, the story takes us through the bunny’s bedtime routine of saying goodnight to all in the room. “Goodnight room, goodnight moon, goodnight cow jumping over the moon…” Ending with “Goodnight noises everywhere.” This story’s patterns, repetition, rhymes, and simple imagery soothe and comfort us. There are no surprises. There is no real climax. There is just a calm and peaceful bedtime routine. What does “Goodnight Moon” have to do with mediation? Or arbitration? Or conflict resolution in general? It helps to illustrate a tool in a neutral’s toolbox. Whether mediation or arbitration, inherently all forms of conflict resolution involve conflict. While we cannot eliminate conflict from conflict resolution, we can create a safe space that allows parties to work through their conflict to find a path to resolution. In mediation, that may mean giving parties the opportunity to share and process their emotions. In arbitration, that may mean giving parties a fair and efficient means for each to tell their side of the story. Just as with “Goodnight Moon,” mediators and arbitrators use routine, repetition, and basic rules to put parties at ease. Author’s Note: As a mediator, I am a “forever student” always seeking new ways to help people find a path to resolution in mediation. As a parent, I have spent a gazillion hours reading books to my children. Oftentimes, these books teach me new ways to approach conflict resolution. In this case, Margaret Wise Brown’s “Goodnight Moon” inspired this post. Disclaimer: Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. ADR Insights - Goodnight Moon The post ADR Insights: Goodnight Moon appeared first on Sylvia Mayer Law.
Closure. Closure is generally defined as the act of closing or a comforting sense of finality. But what does closure mean in mediation? In mediation, closure is the sense of relief parties feel when they are able to put a dispute behind them. Particularly in emotionally charged, long-running, or very contentious disputes, regardless of what value may be exchanged to achieve a settlement, the feeling of closure is often priceless. And in some cases, closure is the most valuable aspect of the resolution. Disclaimer: Nothing contained herein constitutes legal advice nor does anything contained herein create a professional relationship. MMM - Closure The post MAYER MEDIATION MINUTE: Closure appeared first on Sylvia Mayer Law.